Bad Credit Loans
Traditional lenders serve a very important role in the British and
Canadian economy. UK Self Cert and borrowing against Semi commercial property is quite recent. Bad credit loans
against residential
property are now very popular. Nevertheless, when it comes to a fixed
business secured loan or remortgage or secured loan, there are many reasons that small to percentage of
business owners should not always use a traditional high street bank or high street building society, they
should use a broker to find the best deals. Most businesses and individuals would be best suited to interest
only mortgages. If your monthly outgoings are tight you must consider the advantages and dis advantages of
interest only mortgages. Use your calculator and study best rates of interest. Give
consideration to insurance and get quotes on offset bad credit commercial mortgages. UK First time buyer
self cert mortgage lenders can offer the current rate flexable online options.
There are not just one or two major reasons to obtain a small to
moderate business secured
loan from another source. As you will see below, there are over a
dozen compelling reasons to consider a source other than a traditional bank or building society for a small to
moderate business secured loan. For most small to moderate business owners, five to ten of these reasons are likely
to be applicable to them. Borrowing is now far more difficult since the credit crunch.
Interest Only Mortgage or loans for people with bad
credit?
Mr and Mrs Thompson owned their own home. Mr Thompson had a good but
stressful job working for a local IT company. Mrs Thompson was on long-term sickness benefits. After 3 years of
being at their current home, some bad luck with repairs and renovation work that was necessary Mr Thompson had some
quite large balances across 4 credit cards. The house became more and more of a struggle. One day, after some pipes split the
Thompson’s discovered that the house had a serious structural problem and required underpinning, and the works
were not covered by Mr Thompson’s buildings insurance.
They were unsure of what to do. Did they re mortage interest only?
Get a large no credit check secured loan? They had lots of options as they didn’t have any bad
credit history, defaults or CCJ’s. A week later Mr Thompson found out that one of the IT companies major clients
could be going bust, and they owed his employer quite a lot of money, and were about to be put on stop. He could
smell a redundancy package as he had worked for them for over 9 years. He knew his company had just take on a
rather large self cert offset commercial remortgage of the office and had a much larger set of monthly
outgoings, not just in their mortgage, but in an increased interest rate for the higher loan to value. His
company did have some new business involved with a video website but he wasn't sure that would generate much
revenue for them. He also knew all about the creditcrunch.
Even though Mr Thompson was in debt, he could think of a way to make
the best of a bad situation. He went home to his wife and discussed their financial position. They could re
mortgage their problematic house or get a big no credit check loan and that would just cover their
unsecured credit commitments and the repairs to their house. If they re mortgaged instead of getting a secured loan
they could borrow the money on an interest only basis, that would mean that the extra money they had borrowed they
wouldn't need to pay back, just pay the interest. At this point he didn't need to consider loans for people
with bad credit as his credit was in good shape.
Their monthly outgoings would be lower as the debt they had taken on
against their house would still be smaller that the other loans and minimums on credit cards. The debt would be
paid back over a longer term. Mr Thompson still had good credit history so he
could apply for some very competitive lending products including mortgages with rates around the bank of
England base rate, or sometimes lower if he was willing to pay a big fee.
Interest only mortgages for real people
As Mr Thompson still had a good credit report, he could get a good
mortgage or secured loan quite easily. He could Self Cert his income as his income at the time was not quite
enough.
He had though of a better way though. He got a big secured loan on
his house, soaking up all the equity and getting all his money out of his house. He didn’t pay off his credit
cards; he just kept the money ready in his bank.
6 weeks later he was made redundant and got a £11500 redundancy
package. He got all the money out of his bank as stopped paying his mortgage, his loans and his
credit cards. He knew he would join the many people with bad credit history. He even stopped paying the
council tax bill. He reckoned that the foolish lenders that had lent him money against his ruined house could
take the hit for the losses, and he would go bankrupt.
He found a buy to let landlord with quite a lot of buy to let property. With some of the cash from his redundancy
package, and the loan on his house he paid up 18 months rent in advance on a house that was much nicer than his.
The land lord usually did credit checks on his prospective tenants to make sure they had
a good credit history, but in his case as he was paying so much rent in advance the But to Let landlord did not
care. He no longer had to worry about buildings insurance, repairs, contents insurance or all the other property
owner responsibilities. The buy to let landlord used his lump of cash he had paid in advance as a deposit for
another house, so the lump of money was very useful to him. The buy to let landlord managed to get a 90% mortgage
for his new residential property. The landlord could not find a lender to give him a 95% morgage for buy to let,
just on his own house.
For the first 6 months the landlord did a deal with Mrs Thompson so
her benefits could get some of the rent paid using the housing benefits scheme run by the local council.
Mr Thompson setup a small business in his wife’s name, doing IT
support, got a contract mobile phone, a car on car finance and all the other credit agreements he had before went
in his wife’s name. He didn't care about the credit crunch and all the sub prime borrowing problems in the USA and
the UK as he was sorted. All his debts were gone - in the bin, gone for good, he could apply for no credit check
loans too.
He even went to buy a small office to meet clients in his wife’s
name with a self cert commercial property mortgage with a high LTV. The self cert commercial mortage was great for
his wife, as she had very little provable income.
After a year, Mr Thompson was a discharged bankrupt and had a clean
sheet, and a load of his old council tax bill had gone in the bin too which gave him great satisfaction.
He saw his old house in a local property auction after it had been
repossessed and it was sold for just over half of what the borrowing he had on it! The lender lost a stack of
money, money that he still had under his bed! He was glad he hadn't stayed where has was and got a bad credit
secured loan or interest only mortgage!
In the BTL rented house with no credit check, they had a nicer
place, a lot more disposable income, minimal responsibilities, and the rent was less than their old mortgage was,
and the house was much nicer in a better location.
The buy to let land lord had difficulty later on re financing
his BTL portfolio as after the credit crunch and all the high LTV sub-prime lending in the UK, lenders were
cranking up fees and tightening their criteria for lending.
The credit crunch has had a big impact of property in the UK,
France, Spain, Germany, Scotland, Ireland and of course the USA.
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