Bad Credit Loans

Bad Credit Loans

If you have “bad credit” it generally means that obtaining a loan could be more difficult and many people are often turned down when applying for finance. Caboodle specialise in helping homeowners with a bad or poor credit history so let us see if we can help you too.

A bad credit homeowner loan is a secured loan that is specifically designed for borrowers who have previously missed payments or defaulted on loans or credit cards, got County Court Judgements (CCJ`s) or missed or been late with mortgage repayments. Though bad credit loans typically charge higher interest rates to reflect the borrowers bad credit, they can be very helpful in putting people back on track to repairing their credit rating so that they qualify for better rates on finance in the future.

A bad credit secured loan from Caboodle could be used to consolidate your existing credit cards, store cards and unsecured loans leaving you with just one simple, manageable monthly repayment. Loans are available over terms of 3 – 25 years to suit your budget but it is important to remember that the longer the term the more you will repay in total, although many loans have low or no early repayment charges, meaning you are not tied in for any specific period of time and do not have to pay high penalties if you want to clear your loan early.

Even if you have poor or adverse credit, CCJ’s or mortgage arrears you could still qualify for a bad credit secured loan though Caboodle. As part of the enquiry process your Caboodle adviser will assess your personal circumstances and compare loan plans from many lenders to find the best available to meet your requirements.

Frequently asked questions about bad credit loans

Is a secured homeowner loan the right solution for me if I have bad credit?

– Although bad credit homeowners loans are the solution for many there may be alternative solutions available that suit certain circumstances. Your Caboodle adviser will assess your circumstances and discuss with you whether a secured loan is the right solution or whether alternative route should be considered.

Does taking out a bad credit secured loan improve your future credit rating?

– In many circumstances secured homeowner loans for people with adverse or bad credit can be the first step towards repairing and improving their credit rating. This however can only be achieved if after taking out the loan all payments are met on time and no other bad credit is collected.

How long does it take to repair my credit history after taking out a bad credit secured loan?

– There is no set period as credit reference agencies keep records of all financial transactions for six years, although depending on the severity of the adverse credit before the loan is taken out some people can repair their credit rating within 12 months as the majority of lenders only look back at this period of time when considering how credit worthy a person is.

At Caboodle we also have access to a wide range of bad credit remortgage plans which your adviser will be able to discuss with you if you feel this option may also be of interest.

Following some changes in regulation, Secured Loans are now commonly referred to as “second charge loans” or “second charge mortgages”. This terminology may be used when we speak to you about your requirements and in documents you receive as part of the process.

The secured loans process is simple, either complete the short online enquiry form and a Caboodle adviser will contact you, or call us at no obligation on 0800 151 2407 or 0121 308 9114.

 

Representative 7.65% APRC. Loans subject to status.

Representative example: Assumed borrowing of £20,000 over 120 months, with a borrowing rate of 5.9% per annum. There would be 120 monthly instalments of £235.50. Total amount payable is £28,260 comprised of; loan capital (£20,000); interest (£6,770); broker fee (£995); lender fee (£495). This would result in an overall cost for comparison of 7.65% APRC.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of Pink Home Loans, Pink Home loans is a trading style of Advance Mortgage Funding Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 305008) for mortgage and non-investment insurance advice.
The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2017 Caboodle Financial Services Ltd