Can I Obtain A Bad Credit Loan When My Credit Rating Is Bad?

Due to the current recession many individuals think that bad credit loans no longer exist.

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.

Homeowners are in a better situation, and in fact until the advent of the credit crunch bad credit loans were quite readily available from a good range of secured bad credit loan lenders. Even homeowners with the most awful credit rating could get a bad credit loan up to a maximum LTV of 75%

Even although these secured bad credit loans are not so readily available now as they were two years or so ago they are still in the market in a more restricted fashion.

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.

The maximum LTV for these bad credit loans is 50% and the maximum loan is also restricted to a maximum loan amount of around 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.

Want to find out more about bad credit loans then visit Drips Lizzy’s site on how to choose the best bad credit loanfor your needs.

Tags: bad credit loan, bad credit loans, homeowner loans, Mortgage Loans, property, property prices, remortgages, secured loans