Secured Loans with Bad Credit
Here at Just Mortgage Brokers we specialise in helping our clients to find the best secured loan rates, even when they have bad credit. Our aim is to help ease the process of finding the right secured loan for you, regardless of your bad credit history. All of our secured loans are designed exclusively for homeowners, ensuring that we will find the best solution for any financial circumstances.
Can I Get a Secured Loan with Bad Credit?
If you have an adverse credit history, the likelihood is that you’ll have been refused a loan in the past. But worry not, because even with a poor credit score, there are still potential sources of finance for you out there, some of which have been designed specifically for prospective borrowers like you.
What is a bad credit secured loan?
Bad credit secured loans are loans designed for people with poor credit histories who have been turned down by the mainstream lenders. Loans can be agreed for large amounts of up to £70,000-£75,000, although you could borrow as much £100,000 with the right lender. The loans are repaid over longer periods, typically 25-30 years, and are secured against your property.
Bad credit secured loans are well suited to homeowners who have not been able to arrange a personal or unsecured loan, and a remortgage simply doesn’t make sense. Bad credit lenders do not refuse loan applicants purely on the basis of a poor credit history. However, this type of credit will typically be more expensive than a conventional homeowner’s loan to account for the extra risk.
What are bad credit secured loans suitable for?
Loans are generally agreed for large amounts and repaid over a longer period, which can make them suitable for people looking to consolidate a number of more expensive debts. The interest rates charged on bad credit secured loans are typically lower than guarantor loans, and much lower than payday loans. They can also be cheaper than some credit cards.
However, bad credit secured loans should be seen as a last resort for many. Not only will you be charged a higher rate of interest due to your poor credit score, but your home is also at risk. The repayment terms are also longer than alternative finance types like unsecured loans, which means the loan will cost you more in the long run.
What kind of bad credit events are accepted?
You can be accepted for a bad credit secured loan whether you’ve had a few blips on your financial history, or have a credit report which highlights more significant issues. However, it is not just those with a bad credit score that can struggle to find credit. Those with a non-existent credit score who have very rarely used a credit facility in the past can also experience problems. This is because the lender does not have enough information to make a decision.
Most bad credit events will be accepted by specialist bad credit loan providers. This includes missing repayments on credit cards, personal loans and mortgages. Something as minor as missing a mobile phone payment can even damage your credit score enough for mainstream lenders to think twice about lending to you.
Are secured loans the best option for people with bad credit?
This really depends on the amount of money you need and the period of time you’d like to repay the loan. As a homeowner with a history of bad credit, you are more likely to be accepted for a secured loan rather than a personal loan, which would be the cheaper option.
One of the benefits of a secured loan is its flexibility:
- The repayment term can be longer
- You can borrow more than a personal loan
- The eligibility criteria is less rigorous than a personal loan
However, the reason for this flexibility is due to the fact that your property is being used as security against the loan, so the level of risk for the lender is reduced. You should always remember that losing your home is a real possibility, so only take out a loan you could comfortably afford to repay, even if interest rates were to rise.
How much does a bad credit secured loan cost?
There is no such thing as a ‘one size fits all’ bad credit secured loan, so the interest you pay will depend on your personal circumstances, such as the amount you want to borrow, the repayment period and the severity of your credit problems. If you want to keep the cost down, repaying the loan over a shorter period of time can result in reduced interest charges. However, this will increase the level of your monthly repayments.
We Make it Easier
Secured loans allow homeowners to use equity from the properties for a variety of purposes. However, sometimes having a bad credit history can make this process a bit more complicated. Using our team of professional secured loan brokers can make the procedure a lot more straightforward.
- We consider all clients with bad credit scores
- Soft footprint credit checks
- We have an in-house team of secured loan brokers
- Just Mortgage Brokers can make the procedure a lot more straightforward
Why Choose Us
We have the resources in-house, to ensure that we search for the right lenders with the best rates, with plans created specially to assist with those with bad credit scorings. Secured loans are designed for property owners to make the most of the assets that they already have and that is exactly what we aim to do.
How can we help?
If you have been refused a loan by a mainstream lender in the past, all is not lost. At Just Mortgage brokers, our experienced team will discuss your financial circumstances in detail, before canvassing a network of specialist lenders to find you the right deal. We will also help you explore more appropriate sources of finance if alternative options exist.
For more information, please get in touch with one of our brokers today.