Real Estate
Secured Loans And Loans Before And During The Recession.
November 17, 2009 by Lizzy Dwight · Leave a Comment
In the past previous to the credit crunch all types of loans were readily available. Loans were freely flying about like pieces of confetti.
Even tenants could obtain loans from companies such as Provident who are still in business and advancing loans to homeowners and tenants alike. A tenant is of course a non homeowner.
There has always been companies such as Provident who grant loans to both tenants and homeowners but these loans are for small amounts and their interest rates are high.
There was a loan lender, Welcome Finance who not only arranged secured loans for homeowners, but also granted loans to tenants. This meant naturally that the loan was unsecured and as they also accepted a certain amount of bad status these loans came with a pretty hefty interest rate, but they were useful none the less. Welcome fell victim to the credit crunch and has ceased trading, leaving tenants out in the cold on the loans front.
For tenants requiring a loan the situation is bleak, and they are being pushed to obtain loans from a pay day loan firm, which is a sign of the times and these firms are charging 1800% interest or there a bouts which is extortionate. This figure is no exaggeration.
There always have been money lenders in the major cities of the UK and the poorest of individuals have always had to avail themselves of their services. Now however those who would not have dreamed of obtaining money from these illegal money lenders are being forced to do so, again at unbelievably high rates of interest.
Homeowners are in a much more fortunate position as if they have equity on their property secured homeowner loans are available with interest rates starting at about 7.9%.
Even homeowners with bad or even atrocious credit ratings can obtain a bad credit secured loans at tighter LTV and higher rates of interest, although these bad credit loans are still a good loan product.
categories: loan,homeowner loans,secured loans,debt consolidation loans,debt loans,remortgage,mortgage,real estate
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