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Unsecured Loans Bad Credit: Get financial support without pledging any security
Availing a loan for the good credit holders is not a big deal. But, the problem arises when one is having a bad credit score like bankruptcy, defaults, CCJs, IVA, late payments, missed payments; insolvency, arrears, foreclosures, etc. And, the condition worsens if one is looking for an unsecured loan and that too with a bad credit record because in such a case most of the lenders deny granting loans to such borrowers as they fear if they would repay the entire loan amount by the time. Thus, to help out such people, unsecured loans bad credit have been introduced in the financial market which helps people to borrow money with their bad credit and without pledging any security against the loan. These loans are the suitable option for the non-homeowners and tenants.
Unsecured loans bad credit as the name specifies are the loans in which the borrower is not required to pledge any of his valuable assets like any building, any property or any real estate as security against the loan. Thus, the borrowers need not worry about the re-possession of their valuable assets. But, the lender in this case is at great risk if the borrower fails to repay the entire loan amount by the fixed time duration. Thus, he imposes slightly higher rate of interest on the loan to recover his risk to some extent. These loans are the best suitable option for the borrowers who either dont wish to pledge any of their valuable assets as security against the loan or who cannot actually afford collateral. The loan amount for such loans ranges from $500 to $25000 with flexible repayment and affordable installments. But before applying for these loans, borrower must satisfy some conditions he must be above 18 years of age, he must have a job and must be a citizen of UK. Even the borrowers with bad credit history like CCJs, bankruptcy, arrears, defaults, late payments etc. can also avail such loans without any kind of trouble or hesitation. By repaying the loan by the time, the bad credit holders get a chance to improve their credit rating as an advantage. Borrower can use the loan amount absolutely according to his needs without any kind of limitation or interference. It may be for purposes like renovation of the home, debt consolidation, examination fees, for operation, grocery bills, traveling, wedding, etc.
The online application method is easy and fast to avail these loans. After filling a simple application form with the required personal details, the lender verify it and submit the required amount directly in the borrowers checking account. You will get your money deposited into your bank account on the same day or the next business day. Good online searching can get you best loan deal ever and that too from the very comfort of your own home.
Mortgage loan for people with bad credit!
When a Mortgage loan for people with bad credit is taken to purchase a house, a charge needs to be created in favour of the lender. The borrower needs to mortgage the property in favour of the lender- the bank or the housing finance institution. This creates a security in favour of the bank. It enables bank to secure the repayment of the people with bad credit Mortgage loan. In case the borrower defaults on the repayment of the Mortgage loan or the interest, the bank can enforce the security. In the case of housing loans, continuing security of the residential building mortgage to the bank is accepted, provided the value of the property is sufficient to cover the liability with the prescribed margin.
Mortgage is a form of hypothecation of the property. A Mortgage loans for people with bad credit can be secured by either an equitable mortgage, a mortgage by way of memorandum of entry, or by a registered mortgage. The type of mortgage differs from one bank to another depending on the loan amount, value of equity, customer profile etc. An equitable mortgage is created by way of deposit of title deeds. The ownership documents of the property are deposited with the bank. No formal mortgage deed is executed. This is the simplest and cheapest form of bad credit mortgage.
Registered mortgage is the safest form of mortgage. This is also referred to as English mortgage. No documents of property are required to create an English Mortgage. The borrower has to enter into a mortgage agreement with the bank. This deed is then stamped and registered in order to make it enforceable. This is an expensive mortgage. The stamp and registration charges have to be borne by the borrower. The borrower binds himself to repay the mortgage loan amount as per an agreed schedule and transfers property absolutely to the mortgagee (lender) subject to the condition that the bank or lending institution would transfer the property back to the mortgagor on repayment dues.
In case of mortgage by way of memorandum of entry, the borrower has to sign a declaration stating that he is mortgaging the property to the lender. This declaration is entered in the memorandum of entry of mortgage which can be enforced by the bank in case the borrower defaults in the repayment of loan dues.
Once mortgaged, the borrower can neither sell nor transfer the property to anyone else without the consent of the bank. While purchasing a property, the purchaser should do a due diligence exercise and visit the registrars office to see if any prior encumbrances on the property proposed to be purchased by him are there.
Normally, banks prefer to have the first charge on a property. In case the purchaser has availed of a loan from more than one bank, a pari passu charge may be created in favour of the lenders. However, this usually applies to large projects. In case of a pari passu mortgage, if there is any default in repayment, all the lenders share a right on the property as per the proportion of the loan amount disbursed by them.
The charge needs to be registered with the office of the registrar. Both the lender and the borrower need to be present. The mortgage deal needs to be executed on a non-judicial stamp paper.