Secured Loans, Mortgages And Remortgages Have Seen No Improvement.

The credit crunch affected the home loan sectors of remortgages, mortgages and secured homeowner loans to an enormous extent.

Homeowner loans dropped to less than 20% of their level that they were at before the recession.

Before the recession homeowner loans were an extremely popular way for a homeowner to borrow for any number of purposes virtually to buy anything from a needle to a haystack.

Homeowner loans were often used to pay for home improvements and were a good way to do improvements. Home improvement loans when arranged by an actual home improvement company have interest rates of about 25% which is extortionate. When someone wants a loan for home improvements from his own bank he needs to provide at least two estimates for the planned work. With a secured loan he will have cash in hand to do the work without any written proof of the use of the loan being required, and the interest rate will now be in the region of 9% although before the recession it was even less than this.

The home loan that is a mortgage needed by the majority of people to buy a property fell as the uncertainty of the economy caused people to stay at their current property instead of buying another home. Mortgages were additionally adversely influenced by the drop in the price of properties.

Before the credit crunch it was common for a mortgage payer to change from one provider to another after their current mortgage deal ended and this meant that every two to five years mny homeowners changed their mortgage lender.

Changing mortgage providers is known as a remortgage and remortgages can save the homeowner money by giving him a cheaper interest rate.

Remortgages can also be taken out for a greater amount to raise funds for almost any purpose just like secured loans

With the fall in house prices many homeowners could no longer obtain a remortgage at a really good rate of interest as low rates depend on the equity on a property.

It was believed that the end of the recession would see secured loans, mortgages and remortgages returning to something of their former glory but this hope has been false.

Homeowners are no more popular since the end of the recession while remortgages are at their lowest for ten years with mortgages at the lowest ebb since the Spring of 2001.

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