Homeowners in the UK who have experienced some financial problems in the past or who are currently having some problems meeting their financial commitments because of losing their job or a partner/spouse losing their job through redundancy, illness, or other change in circumstances may find that their credit record could show them as a bad credit risk because of CCJs, defaults, mortgage arrears, late payments. This would make it very difficult to obtain finance such as an unsecured loan and they would probably find that they need to apply for poor credit loan bad credit loans. These loans are generally more expensive and harder to obtain because there is a higher chance that the lender would not receive all the funds due to them.
In the current credit crunch lenders are making far more checks on the credit history of loan applicants and are reluctant to offer funds to people with a poor credit record, or even to people who they assess as heading towards problems with their current financial position.
If you are a homeowner and have some equity in your property (equity is calculated by taking the amount outstanding on your mortgage and any other loans secured on your property from the market value of the property ) it may be posible to use a portion of that money to solve your funding issue with a bad credit loan.
This process is called a second charge loans secured loan or second charge on your property. This secured loan or second charge is similar to having a second mortgage secured on the property leaving the existing mortgage to carry on as before. Lenders regard this as a better option for them as they have the security of the equity in the property if the repayments are not maintained. This would allow the lenders to repossess the property if the bad credit loans applicant failed to repay the debt.
This is the same process that would be followed if repayments were not maintained on the first mortgage on the property.
Applying for a secured loan is an easy process. We offer a free secured loan search to homeowners who complete our free no obligation enquiry form on our website
Depending on the applicant’s situation: if they are employed, self employed with proof of their income, self employed unable or unwilling to prove their income, amount of equity in their property, past or present financial problems, we can quickly decide which lender would offer the best solution to their needs, and work out how much was available as a secured loan, what the monthly repayments would be over a repayment period to suit their wishes and their circumstances.
Depending on status we can offer homeowners access to bad credit loans from £5,000 up to £250,000 which can be repaid over 5 to 25 years.