It is only homeowners who are eligible to apply for homeowner loans A.K.A. secured 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.
Secured loans used to be available at high loan to values up to 100% , and there were also 90% and 95% LTV plans.Secured loans of up to 100,000 were available. In addition income and credit rating were taken into aaccount.
There were a few secured homeowner loan lenders willing to advance secured loans of up to 125% LTV, and it was only homeowners with excellent credit ratings who were considerd for these homeonwer loans. The maximum loan that was granted with most homeowner loan lenders was between 50,000 to 60,000 on this plan.
There are no longer such slack loan to values, and the maximum is 80% for employed prospective secured homeowner loan applicants, and reduced to 70% for self employed people.
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 secured loans have a multitude of uses, including buying vehicles such as boats, vans, caravans , cars. In fact using a homeowner loan to buy a car gives you ready cash in hand to buy the car privately instead of from a dealer. The car will be cheaper and you will not even need 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.
If a homeowner has always had a dream of owning a second home at home or away, this dream can become a reality with a secured loan which can fund 100% of the second home purchase.
This is really only the tip of the mountain regarding secured homeowner loans, and more information is readily available from secured loan brokers.
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