The sub-prime mortgage meltdown has been well documented and the UK market has been all but obliterated in the last two years. Many sub-prime lenders simply shut up shop, with others stopping all new lending and existing with a skeleton staff servicing existing clients.
Back in 2007 the sector was thriving with dozens of lenders distributing a vast range of products to borrowers with pretty much any level of bad credit history.
Undischarged bankruptcy? No problem.
Unlimited County Court Judgments (CCJs)? Step right up.
Massive mortgage arrears? We've got just the deal for you.
After all, with house prices booming the lender always had the secured property to fall back on, didn't they?
And rates were keen as mustard, with many bad credit borrowers paying very little more than mainstream mortgagors. It could be argued that the cheap deals on offer gave little incentive to clean up your credit history and get back on track, since there was always another deal to switch to at the end of your current one - whatever your financial problems!
That's not the case anymore though.
Few and far between
If you have a bad credit history, mild or serious, you will struggle to find a deal in the current market - especially if you try to go it alone.
But there are still some sub-prime mortgages available if you go through the right channels, albeit limited to borrowers with very mild credit problems. They are all available though mortgage brokers only, meaning you cannot access these products yourself via phone, online or in a branch. Indeed the lenders operating in the sub-prime market don't have branches.
Who is lending and what's on offer?
Platform Home Loans is part of Britannia Building Society and therefore now part of Cooperative Financial Services.
It is now only offering products to those with the mildest of credit problems in its 'Almost Prime' range. The broker-only lender will accept CCJs per applicant up to £500 providing none are in the last three months and a bankruptcy or IVA discharged or completed at least four years ago. However, it won't accept borrowers currently in mortgage arrears.
Source
Monday, September 28, 2009
Tuesday, September 15, 2009
You Can Still Apply For A Bad Credit Loan Or A Bad Credit Remortgage
Many people in the UK are struggling under the burden of a pile of debt because they think that loans which could offer them a glimmer of hope in the dark tunnel in which they find themselves are simply not available. They convince themselves that there is no financial help available. This is simply not correct. There are still funds available for all kinds of loans whether it is a debt consolidation loan, a secured loan, a homeowner loan, a car loan, etc. etc.
Many people with a good credit rating are of this belief, so what about the others with a poor, or even an extremely poor rating? They struggle on thinking that no lender would as much as grant them a second look. Due to the present economic climate their household income has been reduced due to overtime hours having been cut or one household member only now working part time hours for example. For the first time in their life they, through no fault of their own, have defaults registered against their name due to making late payments on their credit cards and loans. In the process of robbing Peter to pay Paul, some mortgage payments have been missed resulting in mortgage arrears being registered against them with credit reference agencies such as Equifax and Experian. They struggle on and no longer have the priviledge of enjoying a really good night's sleep. This is giving yourself needless torment. Granted if you are a tenant it will be virtually impossible to get help with your financial struggle,as unsecured lender, Welcome Finance, who specialized in sub prime loans is no longer lending. However if you are a homeowner bad credit loans are still available.
The interest rates are actually quite high, but who can expect anything else to be the case when these adverse credit loans are available to homeowners with unlimited adverse points registered against them? The oldest UK secured loan lender, which in 2002 became known as Prestige Finance, are offering bad credit loans to homeowners at up to 60% LTV, that is, loan to value, and up to 55% LTV for the self employed. At this LTV up to a maximum of four missed mortgage payments in the course of the past year are acceptable. If however the four missed payments occured in four consecutive months the application will have to naturally be referred for prior approval to the bad credit loan lender.Unlimited adverse in mortgage arrears, defaults, CCJ's are accepted at 50% LTV. This means that if your property is worth £300,000 and your mortgaqe balance is £120,000 you can borrow up to £30,000. The bad credit loans are available from £5,000 minimum to a maximum loan of £30,000.
Self certification of income is available for those who are self employed. However if this self employed individual has more than four months mortgage arrears, an accountant's certificate is required to back up the self declaration. Therefore for those crushed under a heavy mountain of debt these bad credit loans are a God send, and offer the poor suffering homeowner a much needed breath of relief, and should see them through the credit crunch when their working hours return hopefully to normal If repayments are kept up, and remember to make sure that you can afford the repayments, and that the loan will 100% alleviate your financial situation,you will in the future , be eligible again, with this tidying up of your debts and credit,thanks to the bad credit loan, to apply for status finance for loans, credit cards, etc.If it is a remortgage that you prefer,the good news is that bad credit remortgages are still available and these offer you the same life altering peace of mind changes as do the bad credit loans.
Two of the main bad credit remortgage lenders are Platform &The Mortgage Works. They also accept self declarations of income for the self employed, but be warned that they do reserve the right to ask for back up proof of income in the form of an accountant's reference or even full accounts. Both these types of bad credit borrowings should enable you to come out of the tunnel at the end of the credit crunch in a healthier state than you are in at present, that is in a healthier state financially and also in your mental well being. Just make sure before applying for either of these bad credit loans that you can afford the repayments, and that they will definately help your financial struggles, and take you out from under the burden of debt. The apply for the bad credit loan, and enjoy your new peace of mind.
Source
Many people with a good credit rating are of this belief, so what about the others with a poor, or even an extremely poor rating? They struggle on thinking that no lender would as much as grant them a second look. Due to the present economic climate their household income has been reduced due to overtime hours having been cut or one household member only now working part time hours for example. For the first time in their life they, through no fault of their own, have defaults registered against their name due to making late payments on their credit cards and loans. In the process of robbing Peter to pay Paul, some mortgage payments have been missed resulting in mortgage arrears being registered against them with credit reference agencies such as Equifax and Experian. They struggle on and no longer have the priviledge of enjoying a really good night's sleep. This is giving yourself needless torment. Granted if you are a tenant it will be virtually impossible to get help with your financial struggle,as unsecured lender, Welcome Finance, who specialized in sub prime loans is no longer lending. However if you are a homeowner bad credit loans are still available.
The interest rates are actually quite high, but who can expect anything else to be the case when these adverse credit loans are available to homeowners with unlimited adverse points registered against them? The oldest UK secured loan lender, which in 2002 became known as Prestige Finance, are offering bad credit loans to homeowners at up to 60% LTV, that is, loan to value, and up to 55% LTV for the self employed. At this LTV up to a maximum of four missed mortgage payments in the course of the past year are acceptable. If however the four missed payments occured in four consecutive months the application will have to naturally be referred for prior approval to the bad credit loan lender.Unlimited adverse in mortgage arrears, defaults, CCJ's are accepted at 50% LTV. This means that if your property is worth £300,000 and your mortgaqe balance is £120,000 you can borrow up to £30,000. The bad credit loans are available from £5,000 minimum to a maximum loan of £30,000.
Self certification of income is available for those who are self employed. However if this self employed individual has more than four months mortgage arrears, an accountant's certificate is required to back up the self declaration. Therefore for those crushed under a heavy mountain of debt these bad credit loans are a God send, and offer the poor suffering homeowner a much needed breath of relief, and should see them through the credit crunch when their working hours return hopefully to normal If repayments are kept up, and remember to make sure that you can afford the repayments, and that the loan will 100% alleviate your financial situation,you will in the future , be eligible again, with this tidying up of your debts and credit,thanks to the bad credit loan, to apply for status finance for loans, credit cards, etc.If it is a remortgage that you prefer,the good news is that bad credit remortgages are still available and these offer you the same life altering peace of mind changes as do the bad credit loans.
Two of the main bad credit remortgage lenders are Platform &The Mortgage Works. They also accept self declarations of income for the self employed, but be warned that they do reserve the right to ask for back up proof of income in the form of an accountant's reference or even full accounts. Both these types of bad credit borrowings should enable you to come out of the tunnel at the end of the credit crunch in a healthier state than you are in at present, that is in a healthier state financially and also in your mental well being. Just make sure before applying for either of these bad credit loans that you can afford the repayments, and that they will definately help your financial struggles, and take you out from under the burden of debt. The apply for the bad credit loan, and enjoy your new peace of mind.
Source
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