The Secured Loans Market Is Seeing Good Signs Of Recovery

May 17, 2010 | Author: | Posted in Finances

Before the recession started the secured loans industry was very busy and many homeowners took out a secured loan as the underwriting was very slack.

Before the credit crunch there were a number of different secured loan lenders all looking for business and actively seeking to expand, but the secured loans market has seen big changes in the industry with many lenders with drawing products and many other lenders withdrawing from the market completly. This was due to house prices falling and if the secured loans lender had to go for repossession after the mortgage was settled and fees to pay there was a big chance that there was not enough left to cover the secured loan that was secured on the property.

Underwriting was slack with many secured loans lenders accepting unlimited adverse such as mortgage arrears, unlimited defaults, unlimited CCJS, and lending to self employed with out a tight equity margin. These secured loans lenders who were lending outside of equity in the property were lending at 100% LTV and over.

With secured loans lenders accepting very adverse cases, the market was booming as the people that were eligible for secured loans then, cannot get a secured loan just now.

There are signs of improvement in the secured loans market but it will take a very long time if ever for there to be the same amount of lenders that were in the market. New secured loan lenders have entered the market with niche products but the equity is restricted. There is also a secured loan lender in the market accepting unlimited adverse but the amount that they will lend is very retricted. There are secured loans lenders lending to self employed with and without proof of income. All this is small signs of improvement in the market.

Secured loans are a good way for homeowners to borrow money and with a secured loan being secured on your property the interest rates are usually lower than unsecured loans as the lenders feel more comfortable in getting their money back.

Before the recession the secured loans market was advertised very extensively and every day we were reminded about secured loans. We were reminded that there were secured loans in television adverts, paper adverts, radio adverts, on the internet and mail shots but I am sure when secured loan lenders and brokers will become more confident very soon.

The secured loan market is seeing very good signs of recovery and secured loans are a great way to borrow money and should definately be considered.

Secured loans can be borrowed for any purpose eg. home improvements, cars, holidays and many people have taken out a secured loans to pay off other high interest loans and credit cards that they have.

There are massive saving to be made in applying for secured loans for debt consolidation purposes exspecially if one has a lot a high amount of borrowings or have a high balance on credit cards. Credit

cards take years to pay of especially if you are only paying the minimum payment every month as doing it this way you are only paying the interest and not touching the credit card balance not only that but credit cards have avery high interst rate but with a secured loan for debt consolidation the interest rate will be lower and when the secured loan is finished you will not owe anything.

Liz has worked for years as a secured loans , homeowner loans and debt consolidation underwriter.She arranges homeowner loans and remortgages for all purposes including debt consolidation.

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