85% LTV Secured Loans Are Available Again

Lenders offering secured loans seem to be regaining their appetite to lend after the upheaval caused by the credit crunch, Loan to value (LTV) requirements have gradually been relaxed and now Nemo are offering second charge loans with up to 85% LTV’s.

The credit crunch saw many lenders either withdrawing from the second charge loans market altogether or tightening up their criteria so much that arranging a secured loan became very difficult.

As credit has slowly become more available, and banks resumed their inter bank lending, there has gradually been a thaw in the credit industry. Some lenders have returned to the market and the number of loan plans has increased.

Nemo Loans are now offering secured loans for up to 85% loan to value. Loans of any amount between £10,000 and £100,000 are available for those in full time employment. Those who are self employed may borrow an amount between £10,000 and £60k. The term of the loan is available for between 5 and 25 years.

As these are secured loans, with your house being used as collateral, you may must be a homeowner with a mortgage to qualify for these loans. Having a good credit rating is also important, although there is an entry level loan available with lower LTV for those with some credit impairment.

Commenting on these loan products, which have an average APR of 11.4%, Sam Marshall, joint-managing director of Memo Loans. “Relatively-speaking, our rates are competitive, but unlike our competitors, we are targeting prime borrowers, so the lower rates reflect that risk profile.”