Secured loans, UK banker say, can be good with good equity levels

June 19th, 2008

With house prices falling, secured loans, UK bankers are saying, are undergoing review. This is not surprising because it seems that some 23,000 householders might be caught with them homes less worth than their mortgage debt. These will be people who have taken out a 100 percent loan to buy their house. Prices for all houses are dropping across the UK and some people here have been pushed into negative equity. The number of people who took those dangerous 100 percent loans is know — there were 23,310 in the year to last March according to the stats from the Council of Mortgage Lenders. And in March itself more than 1400 lenders were given mortgages for the entire value of their newly purchased home. But since then house prices have fallen 5 percent according to this country’s biggest lender, Halifax. So, a secured loan in the UK is still a good instrument for raising fast cash. But you will need to make sure you have sufficient equity in your property before your banker will listen to you.

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Entry Filed under: Business

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