In the past, as the majority of people know, there was no stigma, as it were, attached to the self employed when they needed any form of finance, including a secured loan, a remortgage or mortgage.
Status, that is credit worthiness, was identical for everyone whether they were employed or otherwise , and the rule was, the better the credit rating the better the interest rate charge
Both the employed and the self employed could obtain bad credit remortgage, mortgages and home loan and the rates of interest were the same for both, but higher than for those with a good credit rating, and the equity was restricted.
125 % equity plans were available to clean status employed applicants for both secured loans, mortgages and remortgages with certain lenders.
Those who were self employed ranked a little behind being only eligible for a maximum loan to value of 100%, and that only applied to a selection of lenders.
The biggest advantage that self employed borrowers had over employed ones, was in the case of income when in those days the self employed could state their own net profit without being asked for any additional proof.
These self certs. were often very much over stated, as it is only human to want to buy the home that you crave, the caravan , fancy car, etc.
The credit crisis lead to the tightening up of criteria with the self employed more so than the employed.
Self certs for remortgages and mortgages were totally done away with, and those without full accounts were left in the position of being unable to obtain either a mortgage to move home or a remortgage that could obtain a better interest rate or raise funds for almost everything including debt consolidation..
The self employed were further affected by the equity margins which were more restricted for them than for any other people.
Things are now looking up on both fronts with the increased LTV by Nemo for self employed homeowner loans up to 75%, and Link Loans acceptance of self certs at up to 60% LTV
Learn more about secured loans Stop by Champion Finance’s site where you can find out all about self employed loans for you.
