Mortgages, Remortgages And Secured Loans Before And Since The Recession.
It has now been officially announced that the recession in the UK is now officially over.
This very same news has been expounded before in the press, but this time it is 100% correct and official.
The reckless lending of banks and building societies was a major contributory factor of the credit crunch in the first place and the financial sector subsequently was more adversely affected as a result of the credit crisis than almost any other industry.
The secured loan, mortgage and remortgage industries went from one extreme to the other with the slack underwriting being replaced with underwriting at the opposite end of the spectrum, and other major changes were seen.
A major factor of the credit crisis was seen in the number of secured loan lenders who closed their doors and these were such lenders as Future Mortgages and First Plus.
One lax secured loan prior to the recession was the well known 125% plan introduced by First Plus where loans of 125% of the property value could be advanced.
Pre credit crunch secured loans were available to the self employed without accounts and the applicant stated his own income on a letter head or a plain sheet of paper accompanied by a business card.
For the self employed wanting a remortgage or a mortgage self declarations of earnings were also available.
There are no mortgages or remortgages available on self declarations now and although one secured loan lender accepts them the rates are high at about 25% and the equity is tight at 50% LTV.
Main stream secured loans are now restricted to 70% or sometimes 80% for employed borrowers and 60% to 65% for those who are self employed and they must produce at least an accountants certificate and sometimes even full accounts.
Perhaps the fact that the recession is now officially over, common sense will prevail and underwriting will become sensible again.
Learn more about secured loans. Stop by Champion Finance’s site where you can find out all about remortgage for you.
