State of the current home loan market including bad credit applications

The market has shrunk considerably compared to the boom times a few years ago. A good proportion of the products have been withdrawn (especially a lot of the bad credit loans) and a lot of the major lenders have left the market to nurse badly bruised balance sheets.

That said, there are some active lenders and loan.co.uk has access to all of them including the self employed and bad credit specialist lenders.

Most people and circumstances are still catered for but the more problems (such as bad credit) with an application then the more equity the lender will want to see in your property.

There are a number of people with bad credit and bad credit scores who are now unable to get unsecured loans so there are probably more applications for loans than lenders have money to lend at the moment but it is improving each month.

One of our sister companies is lending about 4 million pounds a month at the moment on secured loans and could easily do treble that with the applications that are coming in.

So when there is more demand than supply the lenders start to get a bit more choosy about who they lend to. So if you have bad credit and little or no equity the it is unlikely you will get a secured loan at the moment (if you do fall into the Bad credit / no equity category then please see other loan products on loan.co.uk)

The realistic maximum LTV is about 85% although most lenders are looking for below 75% to 80% (if you have bad credit and mortgage arrears then this will obviously be reduced further).