There are quite a few homeowners in the UK who might not think they have an option to get rid of their bad credit history. The fact of the matter though is that they don't realize the answer is all around them. That's right; their own house can help them improve their bad credit history
Are you being constantly denied loans simply because of bad credit history? The recession did affect a lot of us negatively and there were a lot of people that had trouble repaying their debts on time between 2008 and 2010. If this has left a black mark on your credit score you shouldn't just sit around thinking you can't get a loan.
There are many lenders in the market today that are willing to give secured home loans to people with the worst credit scores as well. Even people that might not own a home but have limited assets may be eligible for home loans as well. But before you jump the gun and apply for a secured home loan, there are a few things for you to understand.
People that have poor credit ratings aren't as unfortunate if they have a house to their name. Since they own a home, they basically have an asset which they can use as collateral with loan companies to get a secured loan. That is why people with bad credit have a much better chance of getting secured loans against their property as opposed to people with bad credit that have nothing to give.
Even if you own a house which isn't completely paid for, you can still use it to get homeowner loans. The only point to be noted here is that you will not be able to take a home loan which is larger than the value of the property not already covered by mortgage. Each time you make a mortgage payment towards your home, its value increases.
And the best part about all of this is that most lenders consider homes as the best form of collateral for their loans. So even if you have an extremely poor credit history, you can still look forward to large secured loans with extremely low rates of interest.
But not everyone owns a home and it would be unfair to exclude the less fortunate people from this. They too may be able to get unsecured loans even with bad credit. The value of these loans will be much lower though and they will be paying higher rates of interest. But the fact of the matter is that it's possible.
One last thing, just because you are eligible for a secured home loan doesn't mean you should just go with the first deal you are offered. There are a large number of loan companies in the UK today and you should check with at least 3 or 4 of them before making a decision. Not every loan company can get you the same deal. The more you look, the more the chances of you getting a great deal.
