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Tenants cannot apply for secured loans which are also known as homeowner loans.

Tenants cannot apply for homeowner loans as these secured loans are secured, and what they are secured against is the equity in a property. Equity is the difference between the worth of a property, and the balance of the mortgage. If for example the mortgage balance is 150,000 and the property is worth 300,000 the equity in this case is 150,000.

Loan to value plans before the recession were available up to 100%, and secured loans of up to 100,000 were readily available subject to other criteria relating to a homeowner loan applicant’s status, income, etc.

Some homeowner loan lenders even advanced secured loans at 125% LTV, meaning that secured loans were available at up to 25% more than the value of the property. However most lenders limited the maximum loan on this plan to a maximum of 60,000.

Now the equity margin is restricted to a maximum of 70% for self employed homeowner loan borrowers and 80% for employed applicants.

Before the credit crunch,providing of course there was sufficient equity,secured loans were available up to a maximum of 250,000, whereas now some secured loan lenders are only prepared to grant up to a maximum loan value of 50,000 while other homeowner loan lenders grant secured loans up to 100,000

Homeowner loans can be used for almost any purpose such as to buy a car, motorhome, boat etc.In fact homeowner loans are a very good way to fund such a purchase as these loans enable you to buy a vehicle from a private individual or at an auction, and this can save you a lot of money. If you want to buy a car for example from a dealership and arrange a loan from the dealer to buy a car you will pay more for the vehicle than you would if you bought it in a private sale. Also if you buy from a dealership you will require a substantial deposit of up to 30%, and if you do not have a car to trade in 30% can be a fair amount of money to have to hand. A secured homeowner loan will fund the purchase without the need for a deposit.

A homeowner loan is an excellent way to arrange debt consolidation which combines all your outgoings on credit cards, personal loans, etc. saving you a fortune and making your financial life easier to manage.

Secured homeowner loans can be used to buy a second home either at home or abroad, and as with using a homeowner loan to buy a car it does away with needing a deposit.

Hopefully the reader has found these facts about homeowner loans of some use, but if further information is required the best idea is to contact a specialist homeowner loan broker.

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best homeowner loan for your needs.