Apply Now For Mortgages, Remortgages And Secured Loans While Rates Are Still Low

With interest rates probably set to rise this is the time to take out all sorts of finance.

During the recession the Bank of England reduced the base lending rate to half of 1% in order to encourage borrowing of all kinds of finance, including mortgages, remortgages and .secured loans, as the demand for all these home loans had rapidly diminished.

Before this time the uptake of these products was massive with over twenty secured loan lenders in the market, and up to four thousand mortgage and remortgage plans available.

It was possible to take out a homeowner loan for 25% more than a property was worth, and 100% and 115% plans also existed.

In fact secured loans were probably too readily available because as long as a homeowner had a reasonably good credit rating and had lived at his property for at least 6 months he could obtain a loan which meant that lenders depended on property prices rising rapidly.

Mortgages and remortgages could also be obtained easily and some mortgage providers granted them at up to 125% LTV which lead to many people becoming homeowners without any money at all behind them.

Naturally when house prices not only did not increase but actually fell, lenders lost a great deal of money if they were forced to take back the property due to the non payment of the homeowner.

Another practice common at that point was the self certification of income, and 50% of secured loans, mortgages and remortgages were arranged in this way.

The credit crisis lead to the abolition of these reckless loan to values and self declarations for all mortgages and remortgages, and for some time the best loan to value for a mortgage was 85% for home movers and 75% for first time buyers.

During the recession the best loan to value for the employed was 75% and 10% less than that for self employed people.

Because of the very resticted underwriting criteria, the very low base rate did not encourage the public to borrow in the way that Government had hoped.

However with some less strict underwriting being introduced and secured loans now available up to 90% LTV coupled with a recent reduction of interest rates at 7.9% at a maximum 60% LTV, it makes these loans a worthwhile product once again.

Some mortgage lenders are now granting first time buyers a 90% mortgage deal and there are even some mortgage lenders granting 95% mortgages and remortgages for those who are already homeowners.

With strong rumours that interest rates are set to rise as early as next month, it would be a wise move for anyone considering taking out any of these homeowner loans to obtain a fixed rate deal now while interest rates remain low.


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Champion Finance has been established since 1985. They provide whole of the market mortgages, remortgages and secured loans . Helpful, sympathetic debt advice, debt managemet, debt consolidation and all other debt solutions are also available.When looking for a secured loan, remortgage, etc. look no further than Champion Finance.