Are There Bad Credit Loans About At Present?

During the present economic climate many UK citizens consider that bad credit loans have ceased to be.

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 has always been extremely difficult for people who do not own a property to get a loan of any kind even if their credit file is good. For those with a poor credit rating it has always proved difficult to get a bad credit loan. Welcome Finance did offer small bad credit loans to tenants at high rates of interest, but with the demise of Welcome these bad credit loans are no longer available at all.

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.

Though not as easy now as two or so years ago, it is still possible to obtain bad credit loans..

There are still bad credit loan lenders who advance bad credit loans up to a maximum LTV of 60% to 70% but these bad credit loans are for light adverse.

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.

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.

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