Bad Credit Loans Are Still Available

Many people are under the impression that due to the credit crunch bad credit loans are completely unavailable.

It makes sense that many think this, as bad credit loans, bad credit mortgages and bad credit remortgages precipitated the credit crunch. Underwriting in the homeowner loan industry in general caused much of the financial crisis that most of the civilised world has experienced in the course of the last two odd years.

All through history it has been impossible for non homeowners to be accepted for a bad credit loan. Even tenants with great credit ratings find it difficult to obtain a loan now. Lenders really want some sort of security when they grant a loan.

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.

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%.

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 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.

Nevertheless these bad credit loans can help homeowners who are really struggling and have fallen into bad debt often at present through no fault of their own. Therefore the bottom line is that there are bad credit loans out there but are not so readily available now.