| Secured loans, which are also known as homeowner | | | | handful. |
| loans, were a very popular way for property owners | | | | Those who remained in business, not only restricted |
| to borrow. | | | | the equity margin, but also their underwriting in |
| The start of the secured loan was about thirty years | | | | general, and therefore the number of homeowners |
| ago at which time the only lenders of any note were | | | | eligible for secured loans fell, as property prices on |
| FNB and Cedar Holdings. | | | | which these loans depend, went down. |
| Over the years, other loan providers entered the | | | | The self employed, who before the recession could |
| market , some to stay and others to exit almost as | | | | obtain a homeowner loan at up to 90% on a self |
| quickly as they had sprang up. | | | | declaration of earnings, were affected to a greater |
| Eventually, the secured loan market stabilised and | | | | extent than the employed. |
| there was a steady number of lenders providing this | | | | The loan to value was set at a maximum of 70% |
| financial product. There were over twenty | | | | and full accounts were now required. |
| homeowner loan lenders doing brisk business for a | | | | It all looked very bleak, that is until now, when fresh |
| number of years. | | | | hope has appeared. |
| Homeowners were only too happy to apply for | | | | Link Loans, who withdrew from the homeowner loan |
| these loans which had low interest rates and could be | | | | market due to their inability to obtain funds from |
| used for a vast variety of purposes | | | | their backers, Barclays Bank, are back in business and |
| Secured loans are secured on the equity of the | | | | funded now by RBS. |
| property, and originally homeowner loans were only | | | | Secured loans are available at 70% for self employed |
| available up to a maximum of 90%. | | | | people and 80% for employed applicants. |
| As property values soared so did the equity, and | | | | Self certifications are now available from Link Loans |
| before long several lenders were not only advancing | | | | but the borrower has to provide proof of a certain |
| 100% LTV loans but loans at 125%. | | | | level of earnings by providing bank statements for a |
| These 125% secured loans were available from First | | | | three month period. |
| Plus, Paragon and EPF. The former two lenders are | | | | Further improvement for the secured loan sector is |
| no longer trading, while the latter is ticking over, | | | | now being witnessed by Link Loans reducing their |
| granting further advances to existing customers. | | | | interest rates in a statement announced by them |
| In the past there were more than twenty secured | | | | today. |
| loan lenders, but this decreased to less than a | | | | |