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In the past previous to the credit crunch all types of loans were readily available. Loans were freely flying about like pieces of confetti.

Even tenants could obtain loans from companies such as Provident who are still in business and advancing loans to homeowners and tenants alike. A tenant is of course a non homeowner.

The problem with Provident is that the maximum loan has always been small. At present the maximum loan available for a first time borrower is 100, hardly a sum that would buy much nowadays.

There was a loan lender, Welcome Finance who not only arranged secured loans for homeowners, but also granted loans to tenants. This meant naturally that the loan was unsecured and as they also accepted a certain amount of bad status these loans came with a pretty hefty interest rate, but they were useful none the less. Welcome fell victim to the credit crunch and has ceased trading, leaving tenants out in the cold on the loans front.

For tenants requiring a loan the situation is bleak, and they are being pushed to obtain loans from a pay day loan firm, which is a sign of the times and these firms are charging’00% interest or there a bouts which is extortionate. This figure is no exaggeration.

Even worse is the fact that tenants are being forced to borrow money from illegal money lenders as they have no other hope of obtaining a loan. Money lenders have always thrived where people are at their poorest and most vulnerable, but now more people than ever use their services.

Homeowners are in a better position as if they have equity in their property they can obtain a secured loan based on the equity of their property, and if they have a good credit rating these secured homeowner loans are available from about 9% APR.

Homeowner who have bad credit can obtain bad credit secured loans at 50% to 60% LTV and at interest rates of over 20%. This is still fairly good.

Want to find out more about homeowner loans then vist Champion Finance’s site to find the best secured loan for you.

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