If you have missed some credit card or loan payments, if you have more than one CCJ or if you have defaulted on your mortgage payments, you may well find yourself in a category known as ‘high-risk’.

What this means is a lender will be taking more of a risk by providing you with a loan than someone who has never missed a payment and has no CCJ’s and because of the increased risk involved loans are usually charged at a higher rate of interest.

There is no denying that people with clean credit ratings are more likely to benefit from a more competitive rate of interest.

If you only have one CCJ there are a number of lenders that will still offer you a competitive rate of interest. Some lenders will still consider you for a competitive rate if you have missed a few payments provided you are earning a good steady income and you can afford the loan without being too stretched.

You are only likely to qualify for a loan if you can afford it. There are of course a number of other important factors that affect the decision making process and these should not be overlooked.

The law makes it very difficult for lenders to provide people with loans if there is a chance the loan will only make the debt problem worse and lenders are unlikely to lend to people that can’t repay the loan.

Secured homeowner loans have become an increasingly popular way of rearranging peoples’ finances to spread repayments over a longer period of time and reduce the overall monthly outgoings.

Secured homeowner loans can release the equity available in your property and provide you with a lump sum to repay existing loans, redevelop your home or almost any other purpose. Unsecured loans are very rarely available above around £25,000 and the cost of a two storey extension can well exceed that amount. In some cases a secured loan is the only way to get hold of the required amount.

One of the main benefits of a secured loan is the flexible repayment option of up to 30 years to repay the loan. This means the repayments are generally considerably lower than a short term loan and more manageable.

To some people however, the thought of using their home as security for a loan is a worry and yet thousands of people every year now extend their mortgages for large expenses such as home improvements or debt consolidation.

Some people worry about whether or not they will be approved and are uncertain if a secured loan is right for them. Some people are worried about the effects on their credit rating if one or more companies turn them down.

A broker can perform one credit search and use the information to compare the applicants’ details with the requirements of a number of lenders. This can prevent the worry of lots of credit searches being carried out until a suitable loan is found.

Brokers also generally have access to a large number of large reputable finance houses and many of them have access to the same selection of companies.

So how do you make your choice? How do you decide which broker to go with?

Due to restrictions in the law, the individual must make the decision upon being presented with the facts. One company cannot be recommended above another, only the facts can be provided.

There are a large number of reputable lenders available and most, if not all, are licensed in some way and therefore governed by the law. Basic things to check for are details of a consumer credit licence and registration with the data protection act.

FSA registration is regarded as an industry standard for providers of mortgages and insurance and the FSA also play a big role in governing the way in which loans are regulated. The chance of encountering a large lending company that is not FSA registered is small and reputable brokers will only use lenders that are FSA registered.

The FSA (Financial Standards Authority) was set up to govern the finance industry and ensure the general publics’ safety against fraud and misinformation.

Creditmarket Ltd is a licensed credit broker with access to hundreds of secured homeowner plans suitable for people in all types of situations. There are competitive rates for people with no adverse credit and there are options for people with serious credit problems.
Click to find out more about: Secured Homeowner Loans available through creditmarket.co.uk