Different Interest Rates For Secured Homeowner Loans

The reason that secured loans, otherwise homeowner loans, have good rates of interest is due to the fact that they are secured on an asset, making it more certain that, at least some time or another, the loan lender will be sure of getting the loan funds back.

The asset needed for a homeowner loan is the collateral of the loan borrowers property.

As the interest rates attached to these homeowner loans is so good, this all goes towards making them an excellent way for homeowners to obtain funds when they need them for whatever reason.

This is different from before the credit crunch when even homeowners with virtually no equity could obtain secured loans when loans of up to 100% of the property value were available, nd even some secured lenders provided homeowner loans at 25% more than the property was worth.

Then the rates for 125% were higher than the rates that were available to homeowners with equity.

Now the lowest secured loans rate is about 9% for an employed applicant.

Those, with more equity, were able to obtain a secured loan from about 5.9%, which meant that this was a very cheap loan, and often almost as low as the rate for a mortgage or remortgage. The credit crunch caused secured loan lenders to add on more interest to allow them some form of security for the risk that they were taking.

This lead to the increase in rates, which now commence at about 9% for employed applicants with a clean credit rating.

Even if the interest rate is high, it at least is a way for a homeowner to get back on the road to a clean credit rating once more, which will make him eligible for a lower rate loan in the future.

Therefore there are as many interest rates as there are secured loans

There are even self employed secured loans available now on a self declaration basis with rates at around the 15% mark and this is a price worth paying for self employed without accounts.

Want to find out more about secured loans then visit Champion Finance’s site on how to choose the best self employed loans for you.