Home buyers seeking a bad credit loan to get a new house, or those with an existing loan that need to get a refinance are quickly finding out that it is no easy task. Banks are shying away from bad credit loans, and the few that are still offering them are doing so at premium fees. The application process for bad credit loans has also gotten much more difficult, and there are no expectations that this situation will be changing anytime soon, thanks in a large part to the struggling economy.
“Of those that can’t get a new standard residential deal, they will need to try and find a new sub-prime deal or have no alternative other than moving onto the revert to rate of their existing deal. With this rate currently standing at 9.43% this could prove costly,” stated Darren Cook of MoneyFacts.
“Borrowers could be facing up to a £360 hike in their monthly repayments, which could be a step too far for the majority. As a result we are likely to see more people facing the prospect of repossession as more and more deals come to an end in the near future.”
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