Lenders loans
The credit crunch may have affected the markets to the extent that bad credit mortgages are not as freely available as they were, however lenders loans are still available and at more competitive rates than you might think.
Over recent months there has been a dearth of new mortgage and loan products and that has been down to lenders suffering huge losses during what has become known as the credit crunch. To be more precise, the lenders have not suffered because of the credit crunch, they have suffered from offering too many bad credit or adverse credit loans and mortgages, the so called toxic loans you may have heard about.
It is these toxic loans which have contributed to the banks, building societies and other mortgage lenders woes as the vast majority of these loans have gone bad, meaning that the borrowers have not made their monthly repayments. Because of this, lenders have been scared to offer new products and have tightened their lending criteria to such a degree, that it is almost impossible to het a mortgage if you are a first time buyer.
However, all is not lost. Lenders loans have actually remained fairly stable. A loan is slightly different from a mortgage in that it is known as a second charge or secured loan because it means it is being secured against the property, the property that is already mortgaged.
The great thing about a loan from a lender is that it is a very quick process. Once a deal goes into the lender, it should under normal circumstances, be paid out in a week, whereas if you looked at a mortgage, you would be looking at 12 weeks on average, so as you can see, loans still remain the most viable option for you if you are looking for a quick fix.
The last thing to bear in mind is that loans are still open to the same underwriting criteria as a mortgage, which means that you will still be credit checked and measured on your ability to repay the loan. It doesn’t mean that you cannot apply if you have elements of adverse credit, far from it, it just means that the rate you pay will be entirely dependent on how the loan lender perceives your viability but in a nutshell it works out as:
Clean credit history = Low rate
Bad credit history = Higher rate
Anything else in between these two benchmarks will be judged accordingly however be in no doubt whatsoever, there are lenders loans available out there.
