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.
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.
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.
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.
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.
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