Frequently someone reckons that they really must obtain some kind of extra money for one purpose or the other and they realize that what they require is a loan.
There are all sorts of loans, but they mainly divide into two which are called unsecured or personal loans and secured loans.
The names of unsecured or personal loans explain themselves, as their are is in their name, and this all means that they are advanced to the individual and need no security what so ever. As they are unsecured, everyone can make an application whether they own their property, or rent it from a council, housing association or whether they are homeowners.
Anyone at all can apply for an unsecured or personal loan but it is only homeowners who can take out secured loans as only homeowners have the equity on which to secure the finance.
Secured loans are also known as homeowner loans. for this very reason.
The first major feature for secured loans is that the applicant must be a homeowner, and the second feature is to have equity in the property.
Equity is the difference between a mortgage balance and the properties value.
If a property is worth 300,000 and the mortgage balance is identical it would mean that there is no way that that particular homeowner could obtain a secured loan.
Recently equity was raised to 75% for self employed people and 85% for employed borrowers by one well known secured loan lender. Now it is even simpler to get a low interest loan for almost any purpose including using them as consolidation loans.
There are no longer any 100% plans available and as stated the maximum loan to value for those is 85% and 75% for the employed and self employed respectively.
Fairly recently one secured loan lender increased the LTV to 75% and 85% respectively for the self employed and employed.
Therefore the main features are to own your property and to have sufficient equity. If you meet this criteria you can apply for these cheap loans to carry out home improvements, etc. and they are also ideal debt consolidation loans