The recession was to a large extent caused by the very lax laid back
underwriting in the financial sectors which consists of all types of
loans both private and commercial, remortgages, mortgages , etc.
There are two main types of loans and these ae secured loans and unsecured loans. When thinking about unsecured loans these are available to both homeowners and tenants alike. Homeowners are those who actually own the property in which they live and this is the case whether they own their home outright or whether they have a mortgage secured on the house. Tenants are those who only rent their home either from a local authority or a private individual. Unsecured loans tend to be more expensive than secured loans, as there is absolutely no form of security, the loan lender is not certain that he will be fully repaid. Secured loans on the other hand are more likely to be fully repaid as they are set against an asset, and in the case of homeowner secured loans the asset required is the property. These loans are called either homeowner loans or secured loans for obvious reasons which are because they ae only granted to homeowners and they are secured on property.
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