When a person wants to buy a car, do home improvements and so on, unless they are pretty well heeled, they will need to borrow money for the purchase, that is apply for a loan of some sort or the other.
There are number of different loans, but they broadly divide into two types which are namely unsecured or personal loans and secured loans.
Unsecured or personal loans are in fact self explanatory, and what they are is in their very name, that is they are granted to the individual and need no type of security. Being unsecured, absolutely everyone is eligible to apply whether they own their their home, or are renting from a council, housing association or whatever or whether they are homeowners.
Although all people can, in theory, make application for unsecured loans, it is only homeowners who can make an application for secured loans, as they are the only sector with property on which the finance can be secured.
This is why the other name for secured loans is homeowner loans.
Therefore. having established that the first step towards obtaining a secured loan is to actually own the property in which you live, the second most important aspect is to have equity in your home.
The meaning of equity is the balance that remains when you deduct the mortgage on the property from its value.
To give an example of equity, it means that on a property valued at 230,000 and with a mortgage of the same there would be no equity on which to secured a homeowner loan.
O the other hand on a property value of 200,000 and a mortgage of 120,000, the equity would be 80,000.
The availability of 100% plans disappeared at the start of the recession and the best LTV for these all purpose homeowner loans is 80% for employed applicants and 70% for those who are self employed.
Only a few days ago 75% LTV homeowner loans were brought back for the self employed with 10% more available to the employed.
Therefore the first two requirements are to own your home and to have enough equity. Then if you meet these requirements you can apply for these low rate loans to carry out home improvements, etc. and they also make excellent debt consolidation loans
Looking to find the best deal on a debt consolidation loans then visit www.championfinance.com to find the best deal on self employed loans for you.
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Tags: Debt Consolidation, debt consolidtion loans, homeowner loan, homeowner loans, secured loan, secured loans