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Are There Bad Credit Loans About At Present?

Due to the current recession many individuals think that bad credit loans no longer exist.

This lack of complete understanding of the situation regarding bad credit loans does make sense as after all it was to some extent due to the lax lending and slack underwriting criteria connected with bad credit loans includiing the advancing of bad credit self certification secured loans, mortgages nd remortgages which helped precipitate the current economic climate.

It is certainly a fact that bad credit loans now as in the past are not available to those who do not own their property, but simply rent it from a local council or housing association or a private individual. Even tenants with a good to an excellent credit rating find it difficult to obtain loans of any kind at the best of times, and since the recession the situation has become more and more dire.

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.

For homeowners with C.C.J’s , defaults and mortgage arrears there are still two bad credit secured loan lenders who will consider looking at advancing a bad credit loan to homeowners with extremely bad credit files, and they accept unlimited adverse points.

The maximum LTV for these bad credit loans is 50% and the maximum loan is also restricted to a maximum loan amount of around 23,000.

Nevertheless these bad credit loans can help homeowners who are really struggling and have fallen into bad debt often at present through no fault of their own. Therefore the bottom line is that there are bad credit loans out there but are not so readily available now.

Looking to find the best deal on bad credit loans then visit www.championfinance.com to find the best advice on bad credit loans for you.

Tags: bad credit loan, bad credit loans, homeowner loans, property, property prices, Real Estate, remortgages, secured loans
Posted in Real Estate · November 14th, 2009 · Comments (0)