In the past it was equally easy for self employed to obtain a secured loan or a remortgage as it was for employed applicants.
When assessing an applicant’s suitability for remortgages and secured loans, the provider wil always first and fore most consider the equity on the property of the applicant.
The figure that remains when the mortgage outstanding is taken away from the property value is in fact the equity.
Someone with good equity will receive a better rate of interest than a person tight for income., and the more equity the cheaper the rate of interest granted.
Before the recession, secured loans, otherwise homeowner loans were available at up to 125% LTV which meant that a homeowner with almost no equity could obtain a home loan.
This plan was only available to the employed and excluded self employed borrowers completely.
Self employed applicants could still borrow at lax loan to values, with Nemo Loans advancing loans at 100% to the self employed.
Credit rating was, and is, also important in the granting of a secured loan or a remortgage and the interest rate given reflects this with a low credit score applicant being charged more than an applicant with a high score.
It has always been a factor in remortgages and secured loans as with all loans that the applicant had sufficient income.
In the past, with this being the case, it could be easier for the self employed to fit in income better than the self employed who could at that point declare their own earnings . Many were prone to hike up their income to obtain the finance.
When the recession started all this ceased and remortgage and mortgage self employed applicants needed accounts.
Only one secured loan lender continued to accept self certs but the interest rates were sky high and LTV tight.
Learn more about debt consolidation loans. Stop by Champion Finance’s site where you can find out all about remortgages and what theyi can do for you.
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