Secured Loans, Mortgages And Remortgages Will Hopefully Stay As They Are

Just when matters were improving for secured loans, as well as mortgages and remotgages, can it be that the dire financial state of not only the United States, but also of some of the U.K.'s relatively near neighbours such as Spain and Italy , will also have an adverse reaction on all theise homeowner loans?

These sectors are even now not nearly as healthy or so diverse as they were prior to the beging of 2007 , but it appeared that major improvements were gradually unravelling, and it is to be sincerely hoped that the economic chaos being experienced elsewhere will not cause Great Britain to revert to the awful days that started in the first half of 2007 when the recession started to grab the nation's economy in it's grip.

Right now in the Summer of 2011, the underwriting for secured loans, mortgages and remortgages are in no way as relaxed as they were up until about five years ago, but it was all certainly heading in the correct direction.

Before this time, criteria for most types of borrowing was extremely lax and if a person was a homeowner, the chances were that some type of loan or another would be available.

One example of this was the 125% secured loan plan which was available to clean status employed homeowners providing that they had lived at their address for a minimum period of six months.

These loans had a maximum value of £60,000, while some lenders restricted this to £50,000 which meant that if a property was worth £200,000 and the mortgage balance was for that amount, a secured loan of £50,000 would in theory at least be granted to the applicant.

Mortgages and remortgages at 125% loan to value were also in the market which meant that as regards mortgages, people with absolutely no money could become homeowners which often resulted in mortgage arrears, as the person had not one penny of his own invested

Another common feature of those days was the self declaration of income for the self employed, with one lender, Future Mortgages even accepting self certifications for borrowers who were in employment.

The credit crisis put paid to all these practices, and underwriting for secured loans and remortgages,became much stricter with loans to value being much more limited for all three loans, and self certs. being completly banned for mortgage and remortgage purposes, and much more restrictions were placed on this for secured loans.

In the cource of the last year matters were getting better little by little with the introduction of 90% loan to value homeowner loans, and the very welcome self employed loans without accounts at 60% LTV, and everyone in the industry are praying that the situation will become worse again due to the financial conditions prevailing in other countries.

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