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Can I Obtain A Bad Credit Loan When My Credit Rating Is Bad?
Many people are under the impression that due to the credit crunch bad credit loans are completely unavailable.
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.
Homeowners have always been in a better place than have tenants when it comes to obtaining a bad credit loan.Before the beginning of the credit crunch there were a number of secured loan lenders happily advancing secured loans to homeowners with the the most terrible of credit ratings.The LTV was good considering the credit rating of the bad credit loan applicants being the fairly high LTV of 75%.
Though not as easy now as two or so years ago, it is still possible to obtain bad credit loans..
If a homeowner has a little bad credit he can be granted a bad credit loan at a LTV of 60% to 70%.
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 can really help a homeowner in a sticky situation, and can see them through the credit crunch.In the long run they can help homeowner’s credit rating, and they are still available.
Learn more about bad credit loans Stop by Drips Lizzy’s site where you can find out all about bad credit secured loans and what it can do for you.
categories: bad credit loan,bad credit loans,secured loans,homeowner loans,remortgages,property,property prices
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