Ever since their inception, secured loans or homeowner loans if you prefer, proved often to be the first choice of loan for homeowners.
As the two forms of the title suggests these loans are only available to homeowners in addition to obviously needing some type of security.
The asset against which these homeowner loans are secured is the property of the person applying for the finance, and this security is recorded on the Land Registry as an additional security behind that of the mortgage which was taken out to purchase the property in the first place.
Being secured loans gives them low interest rates, and this is a good part of why they are so appealing to borrowers.
Another appealing feature about secured loans is that they have a wide variety of uses, and can be great ways of making large purchase, paying school and university fees, buying a home in the sun, etc.
In many ways secured loans are very similar to remortgages, but the latter takes double the time to pay out, meaning that for those urgently wanting the money, homeowner loans will be their best option.
Secured loans were very much he province of the self employed mainly due to the fact that there was no requirement to produce proof of earnings in the form of business accounts.
All they had to do was write their own net profit on a bill head without providing anyhing else and these became known as self certs.
There are at last self employed loans available from Link Loans who deal with intermediaries, and secured loans are available to people trading for a minimum of six months.
It was in fact the end of the road for self employed loans if the prospective borrowes could not provide accounts.
The equity on their property must be a maximum of 60% and the last three months bank statements are required.
Things have changed for the better as regards self employed loans and Link Loans, through intermediaries, are offering secured loans to self employed borrowers who have been in business for at least six months
This meant that self employed loans for self employed people who could not fully prove their income simply did not exist any more.
Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best self employed loans for you.
