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Blemain introduces new Loans
One of the UK's prominent loan providers, Blemain Finance, has rolled out new plans for it's secured loans range.
The company recently announced it had secured a new round of wholesale finance from which to operate it's loans business and it recently informed it's brokers how the new range of loans would be structured in the light of market changes.
From what Blemain has announced it is clear that the new commercial finance deal it has arranged came with a few strings attached. The format of the new plans shows that the company had to agree to some fairly tight lending criteria in order to push the deal through.
The new rules boil down to more accurate property valuations, ensuring the collateral attached to a secured loan is as valuable as it needs to be, a new maximum LTV (loan to value) level of 65% and a restriction on maximum loan size to £50,000.
These new rules will ensure that risks are kept low and the likelihood of loans defaulting should be small.
Other companies have had serious problems arranging the loans they need to run their businesses and some have had to cut secured loan products completely. What this means for the consumer is a smaller choice of secured loans but also a reduction in the chance that someone will be offered a loan they cannot really afford.
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