Since the credit crunch hit the UK economy, the secured loans market, along with every other sector of the loans market, has suffered greatly, with lenders withdrawing loan products and reducing maximum loan to value levels, whilst increasing the interest rates they charge on their loans.
However, in recent months it looks as though the secured loans market is starting to make a come back, as several lenders and loan companies are beginning to offer new loan deals at more competitive rates and for much higher loan to value levels than previously.
The latest loan company to enter the secured loan market is Masthaven, who have previously operated in the bridging loan sector, but are now planning to expand into secured loans in the very near future, with what they claim will be a competitively priced range of loan products for those who require this type of loan.
A secured loan can now often be seen as a realistic alternative for a home owner who would normally consider a remortgage on their property in order to raise additional funds, as there are now many cheap loan rates available on the market, many of which offer relatively high loan to value levels.
Someone who has an existing home owner loan on their lender’s standard variable rate, which they took out prior to the credit crunch, could be paying an extremely low interest rate on their loan, possibly even less than 1 per cent, which they would lose if they were to look for even the most competitive remortgage loan deal.
Also a borrower with some slight history of adverse credit, or previous loan arrears are likely to find it easier to be accepted for a secured loan on their property, rather than a remortgage deal.
For those individuals who are considering taking some equity out of their homes, a secured loan could now be a realistic option compared with a remortgage and they should seriously consider all the options before making a decision.