Many people are under the impression that due to the credit crunch bad credit loans are completely unavailable.
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 and 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.
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%.
Bad credit secured loans are not so easy to obtain now as they were then, but so saying there is some availability even now.
If a homeowner has a little bad credit he can be granted a bad credit loan at a LTV of 60% to 70%.
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 best LTV available however is restricted to 50% and the loan limit is 23,000.
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 secured loansbad then visit Champion Finance’s site on how to choose the best remortgagesfor your needs.