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.

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.

Bad credit secured loans are not so easy to obtain now as they were then, but so saying there is some availability even now.

Bad credit secured loans are available at between 60% to 70% LTV for homeowners with minor credit problems.

There are two secured loan lenders who still advance bad credit secured loans to individuals with unlimited bad credit points. These lenders are Blemain Finance and First European Securities. These bad credit secured loan borrowers can have unlimited defaults, etc.

The best LTV available however is restricted to 50% and the loan limit is 23,000.

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.

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