Debt Advice, Debt Consolidation And Secured Loans / Homeowner Loans

Until the start of 2007 secured loans, also known as homeowner loans were the loans of choice for homeowners.

Only homeowners can apply for homeowner loans and hence the name.

The asset in question is the security of the secured loan applicant's property.

These loans originated away back about thirty years ago, when the only secured loan lenders at that time were Cedar Holdings and FNB who was then known as First National Securities.

Over the years that followed other homeowner loan lenders entered the market mnany of whom withdrew just as suddenly as they had arrived.

During the nineteen ninties, the secured homeowner loan market stabilised and there was a solid steady number of lenders offering these ever so popular loans.

Companies such as FNB EPF, Paragon, Future Mortgages, Nemo, Blemain, First Plus, etc. all flourished and the demand for their products was brisk.

They all had different under writing criteria, but as there were so many different secured loan plans on offer from all these lenders, the vast majority of homeowners were eligible for a homeowner loan.

There were 125% equity plans,which meant that the borrower could obtain a loan of over 25% of the value of the property.

It was possible for the self employed to declare their own net profit without producing any additional proof.

Some lenders even accepted unlimited adverse credit in the shape of mortgage arrears, late loan payments, defaults and CCJS.

In the course of the last three years many secured loan lenders ceased trading and the under writing of those left became much more strict.

This applied even more so to the self employed who almost always had now to produce two years full accounts.

This forced many who could have made good use of a secured loan, for debt consolidaion in particular, were denied a loan and were often forced to seek debt advice from one of the many hard pressed free debt advice agencies.

One homeowner loan lender, namely Link Loans, who withdrew during the recession due to the failure of Barclays Bank to renew their funding, have now entered the sector again only days ago and are now funded by RBS.

The are accepting those who have only been self employed for six months and the proof of self employment required is a business invoice accompanied by three months bank statements.

A certain number of adverse credit points are allowed.

This is all very good news and news that will enable those requiring a secured loan to apply for the product which was so scarce over the past three years.

These loans will now mean that many who have been seeking debt advice will now be able to obtain the debt consolidtion loan that the debt advice advisor recommended.


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When you are looking for debt consolidation, a secured loan, remortgage or mortgage look no further than Champion Finance who have been established since 1985.They also provide debt help, debt advice and debt solutions of all kinds to help those in debt solve their debt problems.