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Bad Credit Home Loans

How much will lenders be willing to give you?

In most cases lenders will do a simple calculation before offering bad credit home loans: they'll work out the difference between the value of your home and the outstanding balance of your mortgage, and let you borrow a proportion of that figure. Some lenders will offer more, but be careful.

Bad credit home loans are usually based on equity, which is the difference between the value of your home and the amount of money still outstanding on your mortgage. For example, if your home is worth £100,000 and you still owe £50,000 on your mortgage, the equity would be £50,000; lenders will then offer to lend you a proportion of this figure.
Not all lenders offer bad credit home loans based on equity, though: some firms will let you borrow up to 100% of the value of your home, and in some cases you can borrow up to 125%. However, if you're looking for bad credit home loans there's a good chance that you're trying to get out of crippling debts, so borrowing massive amounts of money is probably a bad idea.
Bad credit home loans are usually secured loans, so if you don't keep up the repayments you could lose your house. Make sure you can afford the repayments, and think seriously about taking out payment protection insurance. helps you find the best loans companies for your specific needs, and gives you background information on the various types of loans available in our loans articles, more loans articles and still more loans articles.

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