Secured loan options improving for many home owners

The secured loan market has been somewhat depressed for some time as banks look to recoup their losses, which in some cases have been substantial. With the media furore about the banks being bailed out and the ensuing credit crisis has led to a tightening of criteria that has made it difficult for anyone looking for a secured home loan or homeowner loan. However things appear to be improving and the latest stats seem to indicate that the end of the recession is nearing which should mean that loans become easier to come by.





The types of loans available vary to some degree, unsecured and unsecured loans form the majority of loans that people will be aware of. An unsecured loan is essentially a personal loan and is treated as such, it requires no form of security and usually up to £15000 or so can be borrowed depending on the lenders criteria and the credit worthiness of the potential client. A secured loan is a loan that is secured on the applicantís property, usually higher values can be borrowed, in excess of £75,000, again dependant upon the lender. The main problems have been that because property values have been dropping and the loan to value that lenders are willing to lend at, have also been dropping, this means that for many the available equity that may have been available is no longer there. For many a secured home loan was an option which could have been used to consolidate debts or for a new kitchen, in fact a homeowner loan is an ideal vehicle for these options as it adds value. The typical unsecured home improvement loan has all but virtually disappeared as many unsecured lenders have exited the market.

For many the recent news that house prices are starting to rise and that buyer enquiries are improving is welcome news. The value of a property is, for many, the single biggest asset that they own and the recent downturn has left many with a considerable difference in value from only a couple of years ago. Thankfully it seems we may be over the worst and looking to the future, the wish of many will be that lenders will start to relax their criteria and resume a normal stance when it comes to risk assessment for loan applications.


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