There ARE Funds Available For Homeowner Loans

Online, April 9, 2010 (Newswire.com) - Since the start of the recession, the secured loan, otherwise called homeowner loan, sectors virtually dropped to their knees and this once so popular loan available only to homeowners fell to less than 20% of its former glory.

Secured loans were so popular for several reasons, but mainly due to the fact that their interest rates were low and also because secured loans could be used for almost any purpose including home improvements, car purchase, holidays, weddings, etc.

Debt consolidation was a very common use for homeowner loans, and relieved many homeowners from the burden of debt by combining all their debts in personal loans, credit cards, etc. into the one repayment each month, and not only did debt consolidation save money it also made money management much easier.

The demand for secured loans fell to such an extent that many homeowner loan lenders, such as EPF, First Plus,, Future Mortgages, to name but a few all ceased trading, partly due to lack of borrowers but mainly because they could not find backers to provide the funds for secured loans.

Consequently the number of secured lenders fell from more than twenty to less than a handful between 2007 and the start of 2010.

There have been signs of improvement with equity margins being slackened off a bit, but the industry is still ailing and it is due to the fact that the public are being constantly advised in television and newspaper reports that there are simply no funds available to lend either for secured loans, mortgages and remortgages.

This is not the case, as there are secured loans out there, and a reputable secured loan broker such as Champion Finance can place secured loans at a maximum loan to value of 80% for employed applicants and 70% for the self employed

The good news is that secured loans are now once more available to self employed applicants on a self certification of income, and they are eligible for these loans even if they have only been trading for six months The application must be backed up with three months bank statements and some documentation to prove that they have in fact been established for a minimum of six months. The equity on this plan is 60% LTV.

This recent homeowner loan plan only further backs up the fact that there are funds to hand and no less a player than RBS is funding this new self employed secured loan plan but only through intermediaries such as Champion Finance and not directly.