There are a number of distinct similarities between remortgages and secured loans in addition to there being several distinct differences.
The most concrete aspect of their similarity, is the fact that they are both connected to property, and it is the equity on a property that is the common feature.
Secured loans have also another name and that is homeowner loans which states the obvious, that they are only available to property owners.
Equity is the difference between what a house is worth and the balance of the mortgage that is secured on it.
Before the recession it was possible to obtain secured loans at 125%, but now the maximum is 70% for the self employed and 80% for others.
Remortgages of up to 100% were also available while The Northern Rock advanced remortgages of 25% more than the property value.
This has changed and the LTV for remortgages is somewhat less strict than that of secured loans with some mortgage providers prepared to advance remortgages at 90% LTV.
Before the credit crunch it was acceptable for the self employed to declare their own net profit when applying for either a remortgage or a secured loan but that stopped
For some time no lender accepted self certs for either homeowner loans or remortgages but this has altered in favour of secured loans
These self employed loans on self certs for those who cannot produce accounts will prove very useful to those who are no longer eligible for a remortgage.Yet they should be a good way for someone who cannot obtain a remortgage to obtain the money required.
Important limitations to these self employed loans is that they are only available at a maximum of 60% LTV, and the largest loan is limited to 30,000. The applicant must also produce three months bank statements to show sufficient money being deposited.
These self employed loans of this kind will be a useful alternative to those who cannot obtain a remortgage due to a lack of accounts.
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