One of the most astonishing aspects in the news about property prices, remortgages, secured loans and mortgages in the course of the recession was the fact that the news was so conflicting.
The original news at the beginning of the credit crunch was accurate when it was reported that these three home loan products were very much in the decline
The reason for that of course was obvious, as apart from people being unsure of their financial futures, the underwriting of lenders became so restricted that even those who wanted a mortgage, remortgage or secured loan were unable to obtain them.
The underwriting for mortgages, remortgages and secured loans used to be very lax.
It was possible to obtain a 100% mortgage from a number of lenders while the Northern Rock had 125% deals.
It claimed that the mortgages or remortgages were at 100% and the remainder was on a personal loan basis. However this was not the case, as the sum granted over this was secured on the property and added to the total borrowings of the applicant.
At that point self declarations of income were available for the self employed which meant that the applicants for remortgages, mortgages and secured loans simply declared their own earnings on a business letter head or on a plain sheet of paper accompanied by a business card.
Secured loans were extremely popular, with 100% LTV plans right up to 125% LTV available from a number of lenders.
Therefore it was apparent that the acceptances of appplicants for these three loans declined as self declarations were totally abolished for mortgages and remortgages and equity margins were greatly reduced to a maximum of 85% with most mortgage lenders, while a few were pepared to lend up to to 90%.
Secured loans are now advanced at 75% for the self employed and 85% for those in employment.
One lender is pepared to accept self declarations for secured loans at 50% LTV.
The reason for applications declining is therefoe obvious, but what is not so easy to understand is that from 2007 until the end of the recession in 2010, reports in the press and on television abounded with contradictory reports, stating one day that remortgages and mortgages were delining, and then not long after we were told by the same sources that they were very much on the up with more people applying.
Now in October, months after the recession, the same thing seems to be happening with reports that the home loans industry is showing great signs of improvement, to be told days later that mortgages were again in decline as the house prices slump again.
Also rermortgages are reported to be at their lowest ebb for ten years.
It is to be wondered if there have been any improvements to home loans since the recession ended.
Author Resource:
When you want a remortgage, mortgage, secured loan or are seeking debt advice look no further than Champion Finance. They have been arranging secured loans since 1985 and also provide whole of the market mortgages and remortgages. Helpful friendly debt solutions of all kinds are available including debt consolidation., debt management , etc.
![[Valid RSS feed]](http://www.articlecoop.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
