Obviously only homeowners can apply for homeowner loans.

Until the recession some homeowners opted for unsecured loans, and these loans were often granted as the lender had the security to some extent because if the borrower fell badly behind in his repayments, the loan lender was able to take out a form of secured decree known as an inhibition.

An inhibition is in reality a form of decree secured against the property, and it is registered at the Land Registry. This means that the loan lender will eventually get his money back as the homeowner will not be able to sell the house until the inhibition is paid off.

Now with the shortage of funding available it is almost impossible even for a homeowner to obtain an unsecured loan, unless he is absolutlety blue chip. That means someone who has lived at the same address for a number of years and is on a good salary in a job that he has been in for several years.

Therefore in the present circumstances if a homeowner wants a loan the secured homeowner loan route is the way to go.These secured homeownr loans require a type of security as guarantee, and when talking about homeowner loans the asset is the property.

Things before the recession and during the recession are very different There used to be 125% equity plans which allowed loans to be granted of 25% more than the property was worth. First Plus was the secured loan lender who introduced this plan.These plans were usually available up to a maximum loan of 60,000.

The situation regarding equity is very different now, and the 125% equity secured homeowner loan is a thing of the past and equity margins are now 70% for self employed borrowers and 80% for the employed.

In the past it was sometimes too easy to obtain a secured homeowner loan, and now it has gone to the opposite extreme, and homeowners with completely good credit ratings can now find it difficult to obtain a homeowner loan.

What is required is for a new secured homeowner loan lender to enter the market who is prepared to lend homeowners with good credit ratings secured loans of up to 90% LTV or the end of these excellent homeowner loans could be near.

Looking to find the best deal on secured loansthen visit www.championfinance.com to find the best advice on homeowner loans for you.

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