Best Loans News

Following the effects of the credit crunch and the recent banking crisis, the secured loan industry has been hit particularly hard, with the industry almost grinding to a complete halt and many secured loan providers either closing their doors to new business, or going out of business altogether.

In recent months there have been signs of recovery within the secured loan market, with a number of lenders returning to offering loans once again, although the majority of these have been on a rather cautious basis.

Lending criteria from loan providers has been particularly tight since the credit crunch, with high interest rates and low loan to value ratios, in many cases with lenders only offering up to a maximum of 60 or 75 per cent loan to value.

This has excluded many individuals from being able to take out a secured loan, as due to an outstanding large mortgage balance and reduced equity in their home through falling house prices, they have not had sufficient equity to meet lenders criteria.

But now, Positive Lending, the secured loan packager, has announced that one lender is returning to offering secured loans with a maximum loan to value of 85 per cent.

Nemo have reintroduced secured loans which offer 85 per cent loan to value. They will also offer loans of up to 75 per cent for self employed borrowers and 80 per cent loan to value for those with a lower credit score.

Paul McGonigle of positive Lending commented on the new loan products, he said “This is undoubtedly the best news within the secured loans market for the last two years. The market has been crying out for a prime self employed offering with attractive rates and Nemo has delivered.”

“We also welcome the increase in Loan to value as this will aid us in assisting more customers where a secured loan reflects best advice.”