It is only homeowners who are eligible to apply for homeowner loans A.K.A. secured loans.

Tenants are not eligible as these homeowner loans must be secured by the equity on a property. Equity is the difference between the mortgage balance and the value of the property. To give an example if a property is worth 230,000 and the mortgage balance is 120,000 the available equity would be 110,000.

Before the credit crunch secured homeowner loan lenders granted homeowner loans up to 90% LTV , 95% LTV and 100% LTV, and so based on the previous example loans of up to 100,000 were available but also depended on an applicant’s income and status.

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.

These loan to values have now gone and the maximum LTV is now 80% if the homeowner is in employment and 10% is deducted if the homeowner loan borrower is self employed.

Secured homeowner loans used to be up to a maximum loan value of 250,000. With others the maximum available homeowner loan was 100,000. Secured loans are available now of up to 50,000 with some homeowner loan lenders, and some are prepared to lend 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.

Secured homeowner loans can be used to buy a second home either at home or abroad, and as with using a homeowner loan to buy a car it does away with needing a deposit.

Hopefully the reader has found these facts about homeowner loans of some use, but if further information is required the best idea is to contact a specialist homeowner loan broker.

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best homeowner loan for your needs.

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