Your credit ratings can go down for various reasons. It can be for the defaults in your monthly repayments, or you may have an unconventional source of income. Or no income proofs can also invite such situations.
Lenders in UK have designed few lending criteria for the people with imperfect credit ratings. To get a best deal in the market you have to shop around. You can also research in the internet. Whenever you apply for the loan the lender will arrange an appointment with their financial planning manager. He will assess your requirements and offer you a product which suits you the best.
The interest rate and the APR (Annual percentage rate) will be a little higher than the normal market rates, as there is a risk factor involved for the lenders.
There are two types of loan offered to the creditors with a bad credit rating. One is secured with some collateral like Property, pension funds, endowment policies etc. and the other one is unsecured. The secured lending has lower interest rates than the unsecured lending.
The variable rate which is recently being offered in the market is 10.9% APR .The rates can vary from 7.4% to 27.60% APR depending upon various criteria, decided by the lenders.
It is very easy for you to get a loan for bad creditors in the market; if you have a property. A valuation is done for your property. Some times the lenders give up to 90% of the property valuation as the mortgage advance. You can release some equity from your property and consolidate your present credits. Rest of the funds you can use for your own requirements. If you go for a longer tenure your monthly repayments will go down. That will help you to pay your monthly repayments regularly.
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