Secured Loans – Finding A Suitable Secured Homeowner Loan

Whilst credit conditions have been particularly difficult over the past couple of years, since the onset of the global credit crunch, it has been reported recently that some lenders have been relaxing their loan terms, enabling consumers to enjoy easier access to loans and greater affordability.

Figures have shown that requirements needed to get a home loan have been relaxed by a number of lenders, although many mortgage deals still demand minimum deposit levels of at least 25 percent from lenders.

One financial industry groups has recently reported that there has been an increase in the number of mortgage deals that are looking for higher deposit levels from borrowers, which will prove to be good news for groups such as first time buyers, who have struggled to get mortgages over the past year, partly due to the huge deposits that lenders have been demanding from borrowers in order to gain access to their better rates.

One industry official from the mortgage group stated: “We are seeing a number of mortgage providers slowing reducing their strict criteria and are increasing the number of products available to those that can raise a 15% deposit, be it at a higher initial interest rate.”

One mortgage broker added: “As lenders find the pool of customers who can put down a 40% deposit is shrinking, they are being forced to ask for smaller deposits.”

Over 50 percent of lenders were looking for a minimum deposit of at least 25 percent in December.

However, on industry expert said: “What we have seen over the past few months is a change in lenders offering their best interest rates at 70-75% loan-to-value rather than 60%.”