Recent Improvements To Remortgages, Mortgages And Secured Loans
In spite of the fact that secured loans and remortgages are not yet as readily available as they once were, and still have tighter underwriting criteria than in the past, matters regarding these two home loans are now gradually, slowly but surely, moving in the right direction with more plans now available and more lenders entering the market.
There are now more remortgage plans available with very low rates of interest, and even the loan to value is now better than it was a few months ago.
There are now mortgage lenders prepared to grant remortgages at up to 95% LTV which is a big improvement on the maximum 85% deals that exsisted at the end of last year.
There are of course no 100% or 125% mortgages and remortgages as they were up to the beginning of 2007, and it is very unlikely that these loans to value will ever see the light of day again, and perhaps this is a good thing, as it used to be that someone without a single penny to their name could become a homeowner ,and therefore they had no genuine invested interest in keeping up the repayments if the going got tough.
One thing that is to be hoped however is that mortgage lenders see fit to offer mortgages at a slacker loan to value to first time buyers to enable more people to buy their home without the need for a very large deposit that is simply beyond their means.
I am sure that nobody wishes to revert to a society where those who rent their home outweight property owners.
In the same way as mortgages and remortgages, the fate of secured loans is also looking up with better loans to value available, new lenders entering the market, and and some relaxing of underwriting criteria for self employed borrowers.
For some time the maximum loan to value was reduced to 75 per cent for employed secured loan applicants and to 65 per cent for those who were self employed.
It is now better, and the loan to value has increased by ten per cent allowing more homeowners to borrow.
Link Loans also introduced a very worth while plan in self employed loans that enable those working for themselves to obtain a secured loan at sixty per cent loan to value without accounts, providing they have been trading for sx months and can supply six months bank statements as proof of earnings.
A new homeowner loan lender has appeared called Portal Portfolio, and as it has been only a couple of weeks since they commenced trading it is too soon to discuss any impact they may have, but of course it can again only prove that matters are going in the right direction yet again for all the home loans.