The Future of Remortgages, Mortgages And Secured Loans.

Over the course of the last few years we heard on and of that the recession was about to end and the rumours never came to anything, but now the recession really is over.

The slack underwriting of all sorts of lenders both for loans, remortgages, mortgages to private individuals and to companies lead to the credit crunch.

Many people were granted remortgages, mortgages and secured loans, which are also known as homeowner loans, who really were not in the financial situation to pay the home loans back.

They were granted on the basis of a self certification of income whereby the borrower simply declares their own earnings without any additional proof required by the lender.

Many senior officials at the lending institutions were often aware of the lack of sufficient earnings by the borrowers but they simply turned a blind eye, being more interested in their own fat cat bonuses than in the financial welfare of their customers or even their own employers

Commercial lending was the same with millions of pounds in business loans going to property developers, many of whom in the past would have been thought untrustworthy and would never have been granted a small loan never mind one of many millions.

Before the recession underwriting had been so slack but during the credit crunch it became almost too much the opposite and lead to many being no longer eligible for loans.

Mortgage lending declined and many new housing estates remained with the majority of their properties unsold.

Many people were too unsure about their job security to consider either buying their first home or taking out a mortgage to move to another property.

Homeowner loans decreased to less than 20% of their previous approval level, and both secured loan lenders and brokers closed their doors.

A remortgage is the moving of a mortgage from one lender to another and remortgages also fell during the recession as no one was in the mood for change.

This was again partly because of a lack of confidence in the future and partly due to a fall in the value of properties as low remortgage rates depend on the equity available on a property.

Now that the recession is well and truly over it is to be wondered what the future holds for remortgages, secured loans and mortgages, and if their underwriting will return to the pre recession position or not.


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Champion Finance is the company to contact for your mortgage or remortgage. They arrange mortgages and remortgages from the whole of the market in addition to debt advice to offer debt solutions to those in debt including debt consolidation plans.