What does it take to get loans as a homeowner despite questionable credit scores? There is no doubt that you are running through a tough situation right now. However, the possibility of getting financial assistance to meet some urgent payouts has ignited your hope.

For this reason, you are curious to ensure the chances so that you do not have to wait for the right time to arrive. You can apply for these loans with a mortgage based on the equity available in the property. Having ownership of the property is critical, or you will not fit the criteria.

The calculation of the equity is simple as it indicates the amount of home value you own. This should exclude the mortgage balance and any other loan from the actual worth of your home. The more equity you have the more amount you can expect to borrow.


Now, the likelihood of getting a nod of approval from the lender concerns your individual financial condition and their expectations. If you think of opting for these loans when the mortgage payments are not active, this is not possible.

With low credit scores, re-mortgaging becomes tricky. In this situation, you can contemplate getting these loans instead, as credit history does not form an integral part of the borrowing process here. To learn more about these loans, keep exploring this blog.

Unlock the chance of getting homeowner loans with obligation

Regardless of your experience with banks or other mainstream lenders, a homeowner loan for bad credit people will not disappoint you. Although your credit scores are not perfect, you have an asset in the form of your home to convince the lender. Make sure that its worth is intact or more than what the loan provider might have expected.

Here, your home will have the weightage and it can decide how much you can obtain as loans. You must treat them as secured loans since you borrow against the value of the home. The loan range may vary from lender to lender.

For this reason, it will always be a good idea to avail of the pre-approval facility. Ahead of this, you can go through the following points for a better understanding.

Impact of CCJ on the likelihood of getting loans

There is no need for you to hesitate because of CCJ (County Court Judgement) on your credit report. These loans will still be accessible to you as some lenders will be willing to help. It is not that you will receive the same kind of response from every loan provider as some would like to maintain distance from you.

The reason for this difference in opinion is the hidden fear. It compels the lender to reiterate the consequences that happen if new financial challenges pop up to make repayment tougher for you. They are not ready to bear the brunt of late or missed payments.

Here’s that one thing you can leverage: the duration of staying CCJ in your credit profile. The older it is, the less it will influence the decision of the lender. Besides, you can have financing options that let you borrow money despite poor scores by agreeing to high rates of interest.

Things to do to upgrade the chances of getting approval

If you are looking forward to getting loans with favourable conditions, you must work on the factors that can enhance your chances of acceptance. Low credit scores personify a critical condition that is beyond rectification. Rather, it allows full liberty to utilise simple steps in improving credit history.

  • Authenticate your identity – If you have not yet registered on the electoral roll, it is time you must complete this step right away. You do not have to spend more than five minutes on this process. Furthermore, you can sign up for free.
  • Check if the report is updated – Oftentimes, a prevalent mistake can be the reason behind low credit scores. Extract your credit report to review for errors. If you spot anyone, bring it to the respected authorities’ attention. Then, they will do what is necessary to correct the mistakes.
  • Direct deposits – This way of automating the payments of debt is one of the vital steps that every borrower like you should pursue. It will make sure that all your bills get paid on time. Thus, it restricts the accumulation of debts because of defaults.
  • Say ‘no’ to multiple loan requests – Without analysing the gravity of the situation, you may send requests to many lenders at the same time. This can make you face many hard credit checks within a short span. Stop doing this or else your credit history will never improve.

Obtaining loan assistance even if you have defaulted

It is common for many lenders to reject applications from borrowers with a history of defaults. They do not find the assurance to get loan payments within the given time. This thing cannot happen in the case of homeowner loans because of the collateral factor.

This gives you immunity from issues like bad credit scores. Since an asset is involved, the lender is ready to accept your loan request. This factor diminishes the risk of lending and thus, the lender finds no reason to deny your loan application.

However, the likelihood of getting better rates might be reduced. Therefore, if you have defaulted, it will influence the loan amount you can borrow. Besides, you must put in effort to make sure that you can pay back loans on time or else your possessions will be at stake.

The bottom line

Fulfilling the lender’s expectations is critical. As you already know, some lenders emphasise good credit scores while some just do the reverse. Take pleasure in flexible borrowing facilities with direct lenders. Apart from proving your affordability, which must relieve the lender about successful repayment, having adequate equity is vital.

It gives an idea of the amount of home value you own. If the current value of the home is not great, alternatives to homeowner loans can be your option. You can consider having buy-to-let mortgages, equity release, home improvement loans or debt consolidation loans for homeowners.