Some Homeowners Are Being Denied The Secured Loan They Require.

Before the credit crunch homeowner loans were possibly too readily available with the slack underwriting for loans, mortgages, remortgages, and all types of secured loans, including debt consolidation loans contributing to the current credit crunch. We have been in recession for over two years and inspite of rumblings to the contrary we still appear to be in an economic downturn. Before this downturn homeowners could obtain a secured loan fairly easily, and even those with very poor credit ratings could obtain loans at up to 75% LTV. This meant that if their property was worth £200,000, and the mortgage balance was £100,000, in theory it was possible obtain a loan of up to £50,000. This maybe can be seen as rather lax on the side of the secured loan lender. Nowadays, there still are a couple of secured loan lenders prepared to grant bad credit secured loans, but the maximum equity is 50%, depriving many impaired homeowners of the debt consolidation loan they really need and which could eventually improve their credit score. The secured loan lenders could do with slackening off in their underwring.



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