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Homeowner loans otherwise known as secured loans are of course only available to homeowners.

Homeowners are the only people who are eligible for these homeowner loans as they require to be secured against an asset which in this case is a property. What equity is is the differerence between what a house is worth and the mortgage secured on it. To give an example of what equity is that if a property is worth 290,000, and the mortgage is 100,00, the equity is 190,000.

Before the credit crunch secured homeowner loan lenders granted homeowner loans up to 90% LTV , 95% LTV and 100% LTV, and so based on the previous example loans of up to 100,000 were available but also depended on an applicant’s income and status.

Some homeowner loan lenders even advanced secured loans at 125% LTV, meaning that secured loans were available at up to 25% more than the value of the property. However most lenders limited the maximum loan on this plan to a maximum of 60,000.

Now the equity margin is restricted to a maximum of 70% for self employed homeowner loan borrowers and 80% for employed applicants.

The maximum secured loan values nowadays is between 50,000 to 100,000 depending on secured loan lenders.Before the recession loans of up to 250,000 were available if the secured loan applicant had tons of equity.

Homeowner secured loans have a multitude of uses, including buying vehicles such as boats, vans, caravans , cars. In fact using a homeowner loan to buy a car gives you ready cash in hand to buy the car privately instead of from a dealer. The car will be cheaper and you will not even need a deposit.

A homeowner loan is an excellent way to arrange debt consolidation which combines all your outgoings on credit cards, personal loans, etc. saving you a fortune and making your financial life easier to manage.

Secured homeowner loans can be used to buy a second home either at home or abroad, and as with using a homeowner loan to buy a car it does away with needing a deposit.

These are only a few facts about homeowner loans to hopefully wet your appetite for this excellent low interest secured loan product.

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best homeowner loan for your needs.

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