Unless you maintain a flawless credit score, which is borderline impossible, you’re unlikely to qualify for a conventional loan. As far as most high-street lenders are concerned, credit reports are still the black-and-white be-all and end-all of lending. Nevertheless, this doesn’t mean you’re entirely out of the running.
You simply need to set your sights on a more appropriate type of loan to suit your needs and circumstances.
What are bad-credit homeowner loans?
As the name suggests, bad credit secured loans are loans that are secured on appropriate collateral provided by the borrower. In this instance, homeowner loans for poor credit applicants are secured on the borrower’s property.
Unlike conventional unsecured loans, poor credit-secured loans are specifically designed for customers with imperfect credit scores. Rather than being scrutinised based on their financial histories, applications are considered in accordance with the borrower’s collateral.
Just as long as the value of the property covers the total cost of the loan, everything else is inconsequential. Hence, secured loans for poor credit applicants can be obtained for almost any purpose and for almost any value.
What can bad-credit homeowner loans be used for?
As touched upon above, secured loans for bad credit can be used for just about any purpose imaginable. Nevertheless, there are certain uses for secured loans with bad credit that are more common than others, which include:
- Consolidating existing debts and outgoings
- Funding home improvements and alterations
- Paying unexpected bills
- Meeting urgent business expenses
- Covering the costs of vehicle repairs
- Funding luxury purchases and holidays
Just as long as you can comfortably repay the loan, a secured loan using your home as collateral could be ideal.
How do homeowner loans with bad credit work?
Irrespective of how much you need and what you need it for, you’ll find the application process surprisingly easy. As the total cost of the loan is covered by the value of your property, no credit checks or extensive proof of your financial history are necessary. This simplifies and accelerates the process significantly, enabling the funds you need to be accessed as quickly as possible.
Homeowner loans for bad credit can be repaid over as many months or years as suits your budget, typically with more competitive rates of interest than unsecured loans. So even if you have a less-than-perfect credit score, this doesn’t mean you’ll be looking at elevated interest rates and excessive borrowing costs.
How can I get a good deal?
If you’re interested in applying for a homeowner loan with bad credit, it pays to compare the market with the help of an independent broker. Look beyond the High Street and consider as many deals as possible from specialist lenders across the UK.
With bad-credit loans, it’s all about flexibility. You need a dynamic service provider that’s willing and able to create a tailored solution to suit your requirements and your budget. With the help of UK Property Finance, that’s exactly what you’ll get!
For more information or to discuss our bad-credit homeowner loans in more detail, contact the team at UK Property Finance today!