With typical loans now too far out of reach for most people, hassle free bad credit loans are filling a vital niche in the UK loan industry explains Andy Hygate from www.loansbadcredit.org.uk

As the global economy continues its download spiral, many analysts focus upon the fact that the UK may be experiencing the worst of the economic fallout, even compared to the massive crisis in the USA.

Unemployment is rising, loans are harder to get, and the rate of home repossessions shows evidence that the recession is picking up speed, not slowing down. With typical loans now too far out of reach, hassle free loans for bad credit are filling a vital niche in the UK loan industry.

According to recent new reports in the Guardian and Telegraph, the need for bad credit loans will only increase in the coming months of 2009:

Repossessions are now at a 12-year high, and 40,000 properties were lost in 2008. Economist forecasters are already predicting that the number could double in 2009. According to a survey of mortgage lenders, the pace of property repossessions could go higher than 200 per day.

Mortgage lending fell to £12.4bn in January, a drop of 52% compared with the same month last year. The Council of Mortgage Lenders (CML) said total lending last month was at its lowest level since April 2001 after falling by 8 percent in a single month - between December and January.

The CML also said that in 2008 the number of mortgages approved by lenders reached the lowest level in 34 years. Despite more affordable prices, in other words, consumer credit is shrinking as banks hesitate to make loans.

The Royal Institution of Chartered Surveyors agrees that mortgage lending is in decline and is not expected to revive anytime soon. Even if the rest of the economy improves, experts believe that financial lending will be one of the last areas of the economy to recover.

Interest rates on mortgages and remortgages have fallen, but so have requirements for higher down payment deposits. So most people still cannot afford loans to buy homes or remortgage away from troublesome high interest mortgages they already have.

In a move that is symptomatic of financial uncertainty, lost confidence, and outright global panic the price of gold has soared to around US$1,000 per ounce. Meanwhile the UK auto industry has seen its business fall by 50 percent, leading to higher unemployment and imminent plant closings.

Redundancies across all industries and professions are especially high for two large demographic categories - the young and old. More than 38,000 people aged 18 to 24 were made redundant between October and December, and that represents about 25 percent of the total. For them it means a terrific challenge at a time when they desperately need to launch their careers or risk being left behind. Getting hired later - with no job experience or training to offer - may be impossible. But approximately the same percentage of redundancies affected people over the age of 50. This poses a special problem because even if the economy does recover, it is unlikely that they will be offered work because most companies prefer to hire younger people.

In the midst of all this calamity and lack of credit, many Brits are relying heavily upon emergency loans and remortgages. But it seems that the only dependable source of those loans in 2009 may be so-called "bad credit" lenders. These lenders specialize in offering loans, mortgages, and remortgags to people with less than stellar credit, at a time when traditional banks are raising their own loan application standards.