The Changes In The Homeowner Loan, Mortgage And Remortgage Industry.

There have been enormous changes in the homeowner loan, mortgage and remortgage industry since the advent of the credit crunch.The secured loan still is a good and flexible product but it is not available to as many homeowners as it was before. For example before the commencement of the current credit crisis self declarations of income were acceptable when applying for a secured loan, a mortgage and a remortgage. This meant that the self employed could simply state their income on a billhead which was ideal for one man band businesses the owners of which dealt with their own business accounts without involving an accountant. Now for these financial products an accountant’s certificate is a minimum requirement, and frequently mortgage and secured loan lenders ask for three years fully audited accounts. Another extreme change is the demise of any home loan that is genuinely a bad credit loan.In the past homeowners could obtain a homeowner loan or a remortgage, which in the long run could repair their credit score, even if their credit rating was bad. Now there really is no genuinely bad credit loan, except for Prestige who have a bad credit loan at 50% LTV, and normally homeowners with extremely bad debt do not have that amount of equity in their propery. As regards a remortgage, about the worse credit acceptable is no mortgage arrears in the current three months, only one months arrears in the last six months and a total of two months arrears in the last year.Even defaults registered over three years can render you ineligible for a remortgage, even from a subprime lender. Before these defaults would have been ignored. Things certainly are different.


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Liz Moir

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Champion Finance

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