2:13 AM
When the the credit crunch began secured loans diminished to under 80% of their previous condition.Remortgages diminished as well but not quite as badly
Before then secured loans were one of the most common means for homeowners to raise funds and there were a few reasons why this was the case..
One main cause was that it is easier to obtain a secured loan than an unsecured one is because they require no security, providers of these loans are taking some risk.
In addition, unsecured loans have a higher interest rate and their maximum loan value is only of 15,000.
Another factor why secured loans were so very popular was because their repayments could be spread over a twenty five year period if the person needed that amount and this meant that most homeowners could comfortably afford the payments.
Secured loans had low interest rates and often the rate could be as good or better than remortgages that is before the recession but not these days when remortgage rates are better.
Before the credit crunch secured loan rates were available from as little as 5.9% depending on such matters as the status of the borrower regarding credit rating, employment status, etc..
The fact that secured loans and remortgages could be used for almost anything went was a big part to helping to their popularity, as homeowners could use these loans for almost any reason and they would hardly ever need any other kind of loan.
As these loans could do or buy almost anything they could remove the need for homeowners to arrange any other sort of loan, as secured loans could pay for school fees, major home improvements, etc
One popular use for secured loans and remortgages are as debt consolidation loans which means replacing all debts in credit cards, etc. and leaving the one much lower debt consolidation loan in the place of many bits of credit.
Secured loans and remortgages still have the same multitude of uses, repayment period, etc. but they became less popular because of the restricting of criteria which although it has slackened slightly is still not as lax as it was in the good old days.
Before then secured loans were one of the most common means for homeowners to raise funds and there were a few reasons why this was the case..
One main cause was that it is easier to obtain a secured loan than an unsecured one is because they require no security, providers of these loans are taking some risk.
In addition, unsecured loans have a higher interest rate and their maximum loan value is only of 15,000.
Another factor why secured loans were so very popular was because their repayments could be spread over a twenty five year period if the person needed that amount and this meant that most homeowners could comfortably afford the payments.
Secured loans had low interest rates and often the rate could be as good or better than remortgages that is before the recession but not these days when remortgage rates are better.
Before the credit crunch secured loan rates were available from as little as 5.9% depending on such matters as the status of the borrower regarding credit rating, employment status, etc..
The fact that secured loans and remortgages could be used for almost anything went was a big part to helping to their popularity, as homeowners could use these loans for almost any reason and they would hardly ever need any other kind of loan.
As these loans could do or buy almost anything they could remove the need for homeowners to arrange any other sort of loan, as secured loans could pay for school fees, major home improvements, etc
One popular use for secured loans and remortgages are as debt consolidation loans which means replacing all debts in credit cards, etc. and leaving the one much lower debt consolidation loan in the place of many bits of credit.
Secured loans and remortgages still have the same multitude of uses, repayment period, etc. but they became less popular because of the restricting of criteria which although it has slackened slightly is still not as lax as it was in the good old days.
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Learn more about homowner loans Stop by Champion Finance's site where you can find out all about remortgages and what it can do for you.
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