Secured loans which are also commonly called homeowner loans are not a new concept as homeowner loans were first introduced in their current form about three decades ago and they have always proved popular with homeowners needing finance.
Although some aspects of these loans have remained unchanged over this period but like many other products there have been some changes.
The first feature of homeowner loans that have stayed the same is the fact that they require to be secured against an asset which is the equity on a property
Equity is what is left when the mortgage balance is deducted from what they property is valued at, and as the property is owner occupied is the reason that the name for this financial product is homeowner loans or secured loans.
Since the credit crunch homeowner loans are available at 80% LTV for employed applicants and a maximum 70% for those who are self employed.
Before the recession secured loans were available at not only 90% or 95% but were granted up to 125% which meant that homeowner loans were available at up to 25% more than the property was worth , and this meant that although these are supposedly secured loans on a 125% plan there was little or no security.
One big change therefore since secured loans were introduced until now is the equity margins acceptable.
Another big change is in the number of homeowner loans lenders.
Almost thirty years ago there were only two secured lenders which by the end of 2006 had extended to the teens of lenders, but the recesion put paid to this and the majority went out of business as secured loans fell by over 80%.
An additional change is in the difference in income proof needed for self employed borrowers who now require accounts instead of the self certification of earnings as in the past.