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Bad credit is no longer a deterrent
Summary- Gone are the days when having a bad credit score meant you could no longer avail any loan. Sub-prime lenders nowadays provide unsecured loans to those with adverse credit score.
Loans rejected because of bad credit are past tense now. There are many lenders in the UK loan market who are willing to lend you money on interest despite your adverse credit history. Bad credit holders used to consider it a daunting task to avail loans, especially the ones without security.
But, the UK loan market has witnessed many advances in the technological sphere. The competition among lenders has accelerated and so is the variety of loan products in the market. The use of web media for advertising for and selling loans has revolutionized the loan market.
Unsecured loans are not backed by any security and this naturally invites risk for the lender. The lender has no security in the form of borrowers assets to fell assured. The only thing he looks at is the credit history of the borrower. It is indicative of the past repayment records of the borrower. On the basis of this, the borrower’s credibility is assessed. But, what if you have a poor credit history? What if past arrears, defaults and CCJs have stained your repayment history? Sub-prime lenders, especially the private and online are there to help you out with your financial problems.
Unsecured loans are high risk lending options for the lenders. Thus, they charge high APRs. The APR can be higher if the applicant suffers from bad credit score. The lender compensates the risk involved in the loan deal by charging a high APR. Availing unsecured loans at high interest rates is not a bad deal if you neither have any security to back your loan, nor a good credit status to boast of.
If the borrower has a good DTI (debt to income) ratio, he can expect to get a cheap unsecured loan. This is because DTI calculates the disposable income of the borrower. And if the lender finds that the borrower had a bad credit past but now he can afford to pay the loan installments, he happily grants unsecured loans.
Low Mortgage Rates Help Canadian Housing Market Rebound
Housing Sales Continue To Grow
The CREA report for June, 2009 had some very encouraging numbers:
Sales in June were up 8.7% from May, 2009.
June sales were 17.9% higher than those in June of the previous year.
Increased sales and fewer new listings have caused inventories to drop to their lowest levels since August, 2007. Low inventories are important to ensure that price increases become more widespread.
Average home prices increased by 1.7% over June, 2008.
Increases were recorded across the country, but were especially strong in the west. B.C. led the way with nearly 40% more homes being sold year over year. Double-digit gains were made elsewhere too: Saskatchewan was up 25.2%, Alberta 22.2%, and Ontario 15.7%.
CREA also predicts that activity in the second half of the year will match or exceed the results in the first half.
There are many reasons for the robust performance of Canada’s housing market. It seems Canadians learned a lot from the real estate bust of the early 1990s. Because of that experience, the Canadian government introduced tighter rules for borrowing money, which helped Canada avoid the type of subprime lending that caused so much damage to the U.S. housing market.
Another key difference between this recession and the previous housing bust is interest rates. In the early 1990s, borrowing costs were rising, but this time around, interest rates have been very low. As reported in the Calgary Herald, Millan Mulraine of TD Securities noted that Canada’s relatively stable housing market and healthy banking sector allowed homebuyers to take full advantage of lower interest rates and lower prices.
Housing Starts Are Also Up
Another positive sign emerged in the market for new homes. Housing starts were up 8% in June over May of 2009. Again, the results were strongest in western Canada, where urban housing starts in the Prairie provinces increased by 60% and those in B.C. jumped by 25%. In Ontario and Québec – hard hit by manufacturing job losses – the numbers were not as strong. Ontario had an increase of only 3% in urban housing starts, while Québec experienced a decline of 6%. Atlantic Canada also experienced a drop of 4%.
Overall, the numbers for housing starts were much higher than analysts had expected.
All told, the figures for June housing sales and starts seem to indicate that the Canadian housing market is gaining strength. And with mortgage rates still affordable, this may be an ideal time to shop for a new home.
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