Can I Apply For Secured Loans?

Secured loans, as the name makes clear, are obviously granted only when security is offered by the loan borrower, and the security is normally the residential first property.

Generally speaking, people wanting a secured loan apply at the property where they mainly stay, but secured loans can sometimes be secured on a property which the applicant owns but does not in general stay in, but rents out to a third party such as in the case of a buy to let property, and there are even secured loan lenders willing to grant secured loans, otherwise called homeowner loans, secured on a holiday home or other type of second home.

It is not every secured loans provider who is happy to grant such a loan on anything except the owner occupied property, and therefore the best thing to do is to check before applying in order not to be disappointed further down the line.

Secured loans are also often called homeowner loans by dint of the fact that they are only available to actual homeowners.

Homeowner loans, as they are secured, permit loan providers to lend the money at low rates of interest which make them very cheap ways of obtaining extra funds for most purposes.

Due to the fact that interest rates are low, homeowners should always make a point of discovering all about secured loans when he wants to borrow.

The first thing to take into account is the amount of equity on a property.

There is talk that a new lender is coming into the market prepared to grant secured loans at 90% LTV, but at the present moment the best equity margin is 70% for the self employed and 10% more for those in full time employment.

Stable employment is essential when applying for secured loans and a borrower must have been in his current position for a period of at least six months and a complete job history of two or three years is required.

Before the credit crunch up to the start of 2007,self employed applicants could self certify their own net profit, but until a month ago full accounts, or at least an accountants certificate, were required. Now things are looking up and self employed loans are now available from Link Loans without accounts, providing that the applicant has been trading for at least six months.

The majority of secured loan lenders take 40% of gross earnings to pay for all financial out goings .

For homeowner who fit the required underwriting the best way to obtain funds is by secured loans and the only other product that could be considered would be a remortgage

Looking to find the best deal on homeowner loans, then visit www.championfinance.com to find the best deals on secured loans for you.