Self-employed households make up the backbone of our economy but lenders approach loans to businesses differently. To get the credit that you deserve, please consider the following steps.
At Solution Home Loans, we recommended to set clear objectives for how you will apply the proceeds of the loan. Not everyone is the same and you will have your own very special needs. When you know exactly what you are trying to achieve, it is a lot easier to find a product that is suitable to your personal situation.
Determine Financial Position
Having a clear picture of your current financial position will help you and any of your advisers know what options are available. Even if it seems your situation is unique, there are plenty of choices available for all kinds of circumstances. Also, being able to explain any past events will ease the process.
Secrets for the self employed
Banks just love to make it hard for anyone with a business to borrow money!
They want tax returns, notices of assessment and then letters from your accountant, making applying for a loan incredibly difficult.
Luckily not every bank has the same requirements for the self employed!
The majority of lenders require you to be self employed for at least two to three years, however some can consider people who have been self employed for only one year!
If you have been self-employed for one year or more, speak to us today or enquire online to find out how you can get approved for a loan.
If you have been self employed for less than one year, then unfortunately there aren’t many options. Most banks will not lend to you because you do not yet have tax returns to prove your income and because new businesses have more financial uncertainty.
Only just a hand full of our lenders panel can look at your income from your last job and take that as proof that you can afford the loan.
The reasoning behind this is that if you decided to close your business you could always return to working for someone else on a similar salary. On that basis we can help you borrow up to 80% of the property value.
Low doc options
Most lenders these days will allow you to not submit tax returns or financials if you sign a declaration confirming your income.
The lender can then assess your loan using the declared income.
Although most lenders do not charge a higher rate for low doc loans they may charge your Lenders Mortgage Insurance (LMI) as a one off fee when the loan is set up.
This fee is usually charged for loans over 60% of the property value.
For more information Contact us to speak to one of our SHL brokers that will help you find a great lender & competitive loan package.
Applying for a self employed home loan
If you are self-employed and looking to get finance, speak to Solution Home Loans today.
However, keep in mind that it is best to apply for a home or investment loan when you feel your business is stable.
This is something that both Solution Home Loans and the banks cannot assess, you would need to determine this for yourself.
Contact us or enquire online to obtain a quote from a lender that will be best suit your situation.
Contact Solution Home Loans today, for a free financial health check.