Bad credit loans for contractors?

[mad123]

not necessarily. some secures lenders will go up to 125% of property value. could try www.skymortgages.co.uk. btw, blatant spam!!

[premiere]

Just my 2 cents worth........................

Never take a secured loan against your home...especially if you have poor credit ratings as it has been well documented on various news sites and in articles, that companies that provide secured loans to people whose records are deemed 'sub prime', WILL snatch your home away from you at the slightest whiff of a problem in any monthly payment.

You say that you can afford the payments, but what if your contract ends abruptly? or you break a leg?

[Paddy]

Just my 2 cents worth........................

Never take a secured loan against your home...especially if you have poor credit ratings as it has been well documented on various news sites and in articles, that companies that provide secured loans to people whose records are deemed 'sub prime', WILL snatch your home away from you at the slightest whiff of a problem in any monthly payment.

You say that you can afford the payments, but what if your contract ends abruptly? or you break a leg?

I agree with that. In fact it is part of profitable side of lending, repossessions. Banks, BSs and loan companies make loads-of-money on repossessions

[mad123]

it is also the case that bad credit lenders have less repos as a percentage of their loan book than god credit lenders. odd i thought, but true.

[boredsenseless]

it is also the case that bad credit lenders have less repos as a percentage of their loan book than god credit lenders. odd i thought, but true.

Very true cos bad lenders then charge exortionate fees and penalties therefore making more money. Responsible lenders call it time when it becomes obvious you are shafted.

[ASB]

A slightly different view on things - take a look at www.zopa.com. Essentially a place where anyone can loan and anyone can borrow without the bank as a middleman.

They have various catgeories of "risk" which is effected by your previous financial history. Interest rate of a loan is determined by your risk - but assuming you fit within the allowable risk profile there's a good chance you'll get a loan cheaper than from the bank.

ZOPA gave me a free 30 quid. So I lent that in september @ 10.5%. So far I've had the first payment. It seems I've made a total of 3p in interest and paid 2p in fees.

Still I'm 1p up on the deal and should end up a bout 2 quid up on the deal when it completes.

Still the 30 quid was free and there is now some chap with a car. Seems to me it's not bad for borrowers, but not good for lenders.

[RugbyPete]

Lend out £1M and you get £100k a year back...hmm