Contrary to public opinion there is no shortage of secured loans, mortgages and remortgages and people should apply as rates are good.
One of the biggest changes is the fact that the self employed can no longer apply for a mortgage or a remortgage based on a self declaration of net profit as they could before the financial institutions, building societies and banks came crashing about our heads
When a self employed applicant wants a mortgage or a remortgage he must provide two or three years accounts, or at least an accountant's certificate, and the accountant in question must hold a recognized professional qualification, and cannot merely be a book keeper or similar. which in a way is very unfortunate, as although many self certs in the past smacked of fraud or were greatly inflated, many self declarations were genuine , and were ideal for the many self employed who could not prove their income, as they received lots of cash payments from their customers or received tips, etc,
The sort of people we are referring to are trademen such as plumbers, decorators, carpenters, etc, and as regards tips hairdressers are an excellent example
Such people could perhaps only earn £20,000 officially but their correct income could be double that or more.
Secured loans are still there for the self employed., as long as the equity on his property is 50%, and the rates are quite steep, but they are at least one method of them being able to raise finance
The best equity margin for mortgages and remortgages is normally 80% for self employed and for secured loans it is 75% for those who can prove their income.
The best equity for employed applicants for mortgage deals is 90% with some lenders, but most mortgage lenders are more comfortable to offer their products at 85% or less.
If the purpose of the remortgage is consolidation of other debts as well as replacing the original mortgage Santander allow a maximum of 30% of the mortgage amount for this purpose or £30,00 which is not exactly liberal, while the Halifax for example accepts 75% LTV for consolidation remortgages.
Other providers grant their finance up to 90% no matter what the purpose of the loan is.
As regards secured loans, they are available up to 85% with one lender, 75% maximum with another and lower for those with adverse credit..
The underwriting and the information needed for all these three loans vary so much, that the layman is much better to contact an IFA, mortgage or secured loan broker to walk them through the maze.
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