Bad Credit Loans Are Still Available.
During the present economic climate many UK citizens consider that bad credit loans have ceased to be.
It is understandable that people are of this opinion, as the credit crunch was to a great extent caused by reckless lending particularly in the sub prime loan and mortgage markets in America. Lax underwriting was the order of the day way back then. Self declarations of income were available even for bad credit secured loan, mortgage and remortgage applicants.
All through history it has been impossible for non homeowners to be accepted for a bad credit loan. Even tenants with great credit ratings find it difficult to obtain a loan now. Lenders really want some sort of security when they grant a loan.
However for homeowners the situation is different. Until 2007 it was fairly easy for a homeowner to obtain a bad credit secured loan up to a maximum 75% LTV, even with extremely poor credit. Some homeowners who were on the verge of having their property repossessed were saved at the last moment by receiving a bad credit loan.
Even although these secured bad credit loans are not so readily available now as they were two years or so ago they are still in the market in a more restricted fashion.
Bad credit secured loans are available at between 60% to 70% LTV for homeowners with minor credit problems.
Blemain Finance and First European Securites are the two remaining secured loan lenders who give bad credit secured loans to homeowners with any number of adverse credit units registered against them.
These bad credit secured loans have a maximum limit of 23,000 and a maximum LTV of 50% of the value of the property being given as security.
These bad credit loans are still available in a restricted way, and they can be a great help to homeowners at a time when they most need help by means of additional funds.
Want to find out more about bad credit loans then visit Drips Lizzy’s site on how to choose the best bad credit loanfor your needs.
Liz Moir on October 22nd 2009 in Real Estate
