Bad credit loans in a difficult climate

Recent problems in the financial market have tightened up the bad credit loans sector.

No-one can fail to have noticed the problems in the financial market during the late summer and early autumn of 2007. The problems in the UK market were largely triggered by events in the USA, which in turn were linked to the “sub-prime” market. The United States sub-prime market concentrates on supplying mortgages to those who already have credit or debt problems. When the interest rates rise or when people just can’t pay their mortgage, and when this happens in large numbers, the market suffers, and because of the complex links between the US financial market and other financial markets around the world, other economies can suffer too.

Why bad credit loans can still be good value

You may be concerned that the problems with bad debt in the USA may mean that you can’t get a bad credit loan from the UK market. In fact, the UK market is still secure in this area. Loans and mortgages are regulated by the Financial Services Authority, and you should always look for firms that are authorised and regulated by the FSA when you’re buying a financial product. This authorisation means that the adviser has to make sure that the products he or she is recommending are a good fit with your current financial circumstances and needs. You should have all the information you need in order to make an informed choice. So, if you are applying for a bad credit loan, you and your adviser will need to think about several things, including:

• Your current commitments – what loans and credit arrangements do you currently have, and how much does it cost each month to service those products?

• Your current debts – if you have a bad credit history, you need to be honest about your current and past debts, and what you’re doing to try and make the payments.

• Your budget – what can you afford to pay for a new bad credit loan? Don’t take a loan that you don’t think you can afford.

If you are looking for a bad credit loan, let the experts save you time and money by finding the right product for you. Homebank has only the best mortgage consultants ready to advise you on all your mortgage and insurance needs. For useful bad credit loan advice, call us to arrange a no obligation appointment to suit you. Homebank is the ‘people’s mortgage broker’ with over 3500 mortgage products to choose from, including products that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal product for you – call us now on free phone 0800 052 3604 or enquire online.