by : Alan Reed

The secured loan market has gone through some changes in the last couple of months.The majority of Lenders have tightened their criteria, which means that it is now more difficult to get a secured loan, especially If you are looking to Self certify and have no proof of income.

A secured loan is a loan secured on your property, a 2nd charge, with your mortgage being the 1st charge.Lenders look for several factors when considering your application. These include,equity in the property,ability to repay, and your current credit situation. In the current market there are now only a few lenders which will lend at Loan to values ( LTV) in excess of 90%, and if you are looking for a loan with that LTV you may find that the criteria has been tightened. The situation is more difficult if your are self employed, with LTV being reduced accross the board.

The difficulty comes if your self employed and have either mortgage arrears or adverse credit and a high LTV, in the current market your options are certainly limited.

For the self employed the situation can be helped by having some form of proof of income, accounts etc, or even an accountant's reference.

In general, there are still options available, and your best course of action would be to use a secured loan packaging company, who will have the criteria for there lenders available and can help in your search for your loan.

The UK secured loans market is currently experiencing a crisis, as with any market, supply and demand dictates, and the secured loan market is here to stay, because there is demand.However, until confidence increases within the lender community, the available options may be limited.