More Borrowers Looking For Bad Credit Loans
Over the course of the past couple of years, loans for people with adverse credit, or bad credit loans, have practically disappeared from the market place as banks, building societies and other loan providers have reviewed their policies and tightened their lending criteria in the wake of the credit crunch and recession.
But whilst lenders are becoming more restrictive about the loans they are prepared to offer to individuals, more and more people in the UK are falling into the category of having adverse credit, largely due to problems with their finances caused by the effects of the recent economic downturn and not being able to maintain the repayments on their existing loans and credit cards.
As a result of this, a growing number of individuals are now looking for adverse credit loans, particularly in the home owner loan market, according to the latest statistics from Unbiased.co.uk. The website, which helps people find an independent financial adviser (IFA) or loan broker to source a loan from the whole of the market, has said that it has seen a large increase in the number of requests from people who require a bad credit loan.
In September this year, 3 per cent of all enquiries related to bad credit loans, buy in October, this had risen to 7 per cent, the highest figure the company has seen since it started offering the service in August 2008.
Although one or two lenders are starting to return to offering sub prime loans and mortgages, these are still few and far between and it is likely that someone looking for a bad credit loan will find it difficult to obtain the loan they require, without paying particularly high interest rates and arrangement fees and only being able to get a fairly low loan to value ratio.
