| Over the last few years, homeowner loans / | | | | to 70% for self employed borrowers and 75% |
| secured loans have been in a state of decline. | | | | for the employed. |
| At the beginning of 2007 there were over | | | | The tight underwriting made many homeowners |
| twenty secured loan lenders offering a vast array | | | | unable to apply for secured loans that could have |
| of loan products, but by 2010 this was reduced to | | | | been of so much use to them especially to use |
| only a handful. | | | | as debt consolidation loans. |
| Homeowner loans dropped by more than 80%, | | | | The self employed were worse affected than |
| and as a result, not only lenders, but also | | | | any other sector not only due to the additional |
| homeowner loans brokers ceased trading one | | | | restrctiion on equity, but also due to the abolition |
| after the other. | | | | of self declarations of income. |
| In the past, there were plans to suit almost | | | | Before the credit crunch, the self employed were |
| everyone, due to the lax underwriting criteria, | | | | in fact in a good position as regards income, as |
| accepted loan to value, self declarations of | | | | they could self declare their income on a letter |
| earnings for self employed applicants, etc. | | | | head, and as such they were never likely to fail |
| Homeowner loans were appealing for a number of | | | | the income calculation, as they could simply hike |
| different reasons, the first of which was the low | | | | up their earnings to obtain the required loan, and |
| rates of interest applied, which in those days | | | | also the remortgage. |
| started at from 5.9%. which was as low as the | | | | This practice was called self certs. of income, and |
| rates for their close relatives, that is remortgages. | | | | they were used all the time by the self employed |
| They were and still are very popular by dint of | | | | seeking home loans of any kind. |
| the fact that they can be used for almost any | | | | Secured loans and remortgage lenders stopped |
| purpose, including home improvements, paying for | | | | accepting self certs, and now asked for an |
| a holiday or a wedding, car purchase or even for | | | | accountant's letter to verify income or even full |
| buying a holiday home. | | | | accounts. |
| Remortgages can similarly be used for all these | | | | Nothing much altered for homeowner loans over |
| reasons.There were equity plans to suit almost | | | | the period of the recession, that is until now, with |
| everyone, with plans of up to 125% available | | | | Link Loans bringing in an 60% LTV plan for the |
| from several secured loan lenders, such as EPF, | | | | self employed on a self cert of income.The self |
| Paragon and First Plus, which meant that a | | | | employed can apply as long as they have been |
| homeowner could apply for a secured loan of up | | | | trading for at least six months and they must |
| to 25% more than his property was worth. | | | | provide three months bank statements. |
| It is perhaps only to be expected, that with the | | | | There have been new homeowner loan plans |
| fall in property values, First Plus and EPF ceased | | | | introduced by Nemo, with a rise in the LTV for |
| trading and Paragon is only ticking over, granting | | | | employed borrowers to 85% and a reintroduction |
| further advances to those wh are already | | | | of self employed secured loans at an LTV of |
| customers. | | | | 75%. |
| Over the recession, equity margins were reduced | | | | |