County court judgements and current or previous mortgage arrears account for most of the reasons why homeowners or mortgage payers are faced with an adverse credit situation However adverse credit does not have to hold you back.
Consider higher but affordable monthly repayments by taking out a secured adverse credit personal loan. The total repayments will be higher.
| Example | |
| Status | Married - with recent CCJ's & Mortgage arrears |
| Joint Income | £ 20,000 per annum |
| House Value | £ 86,000 at current valuation |
| Mortgage Outstanding | £ 66,000 |
| Equity | £ 20,000 |
| Loan Required | £ 10,000 |
| Table A | |||
| Loan - with adverse credit | APR (var) | Amount | Repayments |
| Secured Loan | 12.90% | £ 10,000 | £ 223.60 |
| Term 60 months | |||
| TOTAL | £ 10,000 | £ 13,416.00 | |
| Table B | |||
| Loan - with A1 credit | APR (var) | Amount | Repayments |
| Unsecured Loan | 7.90% | £ 10,000 | £ 201.18 |
| Term 60 months | |||
| TOTAL | £ 10,000 | £ 12,070.80 | |
You can work out the total cost of each loan simply by multiplying the monthly repayments and the term as follows.
Table A - £ 10,000 costs £223.60 x 60 = £13,416.00
Table B - £ 10,000 costs £201.18 x 60 = £12,070.80