Remortgages And Secured Loans Are Still Available Even For Those With Bad Credit.

Before the recession bad credit secured loans and remortgages were very readily available.

In the past even people with bad credit profiles could obtain remortgages and secured loans at 75% LTV.

Firstly to explain what is meant by equity. Equity is the difference between the value of a property and the balance outstanding on the mortgage.

This means that if a property is valued at 300,000, and the mortgage secured on it is 100,000, the equity is 200,000.

Remortgages and secured loans at 75% loan to value based on the above example would mean that 25% of the property value must be deducted and what remains would leave the maximum remortgage or secured loan available.

The maximum remortgage available would therefore be 225,000 and the maximum secured loan would be 100,000 as that is the maximum secured loan that can be advanced.

Before the recession bad credit rating homeowners could arrange remortgages and secured loans.

Even those on the verge of repossession could have their property remortgaged at the last moment just as they were about to be rendered homeless.

The recession was precipitated in part by lax underwriting.

Now many people think that secured loans and remortgages are completely unavailable to those with a poor credit rating when this is indeed not the case.

Bad credit home loans are still out there although at much stricter criteria and equity margins than in the past.

Unsecured loans for people with a poor credit history are totally unavailable in these credit crisis hit days and for tenants who are in need of a loan the painful truth of the matter is that they are simply not going to be able to onbtain one at all.

For those who own their property there is help available in the form of bad credit rating loans and remortgages.

For homeowneres with a slighty impaired credit rating the maximum LTV is 60% and this is further restricted to 50% if the borrower has a very low credit history.

The highest loan value is only25,000 mark, but this can nevertheless still be of help to a homeowner struggluing to keep his head above water.

For poor credit rating applicants the interest rate is high at 25% approximately.

However if the homeowner keeps his nose clean, that is his financial nose, after obtaining the bad credit loan he can refinance at a better rate of interest a few years down the line when his credit file is clean.

Remortgages are still availble for bad credit file applicants, but the equity margin will be at 60% and the interest rate will be about 10% which is high but much lower than the high interest credit cards, personal loans, etc. that can be paid off with the remortgage.

For those who have financial problems remortgages and secured loans really can help.

by: Liz Moir

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