These days people are more sophisticated about finances than they were in the past, but in spite of this, although most have heard of the expressions secured loans and homeowner loans they do not know exactly what secured loans are.
Obviously the first requisite when applying for one of these loans is that the applicant must be a homeowner as the term homeowner loans makes totally clear.
The alternative name makes it apparent that these loans need a form of security, and the security required is the borrowers own property.
It is not 100% of homeowners who can make application for secured loans, as their property must have enough equity to form the security.
Equity is the difference between the value of the property and the outstanding mortgage balance.
Homeowner loans are recorded at the Land Registry as a second charge on the property with the mortgage taken out to purchase the property being the first charge and hence the fact that these loans are also called second mortgages.
The uses for secured loans is almost un limited and they can be used for almost everything but some lenders are not keen to lend for time shares or holiday homes.
Homeowner loans are often used as debt consolidation loans which is when all different credit cards, personal loans, debts etc. are combined into the one cheaper monthly payment.
An applicant must be at least eighteen to be eligible for a homeowner loan, but there are some providers who set a minimum age of twenty five. The maximum age at the end of the loan varies from lender to lender and can be from 70 to 85 years old.
Secured loans applicants must produce some details concerning their earnings, etc. when thy want a loan and a three years address history and employment history is needed for all applicants.