Loans for self employed – no accounts – poor credit
Loans for self employed
This new product will be of benefit to clients with heavier adverse credit or those who have difficulty proving all of their income and will significantly help self employed borrowers who’s business or credit has suffered in the recent past.
Equifinance have now introduced secured loan plans which increase their loans to £30000 at 65% LTV. This includes applicants with heavy adverse or those who cannot easily prove all income. For applicants with reasonable credit, good equity and borrowing over £20K we may also be able to negotiate lower interest rates which undercut other lenders in this area of the market.
As a reminder, Equifinance already holds a unique position as the only lender which will consider loans up to 75% LTV with heavy adverse or poor income proof. They are also very helpful where the property is ex council or the property value is below £100K (and will consider valuations below £90K if a lower LTV).
Whilst other lenders may accept arrears and bad credit, they will also require full income verification via an accountant or bank statements. For some self employed applicants ( cab drivers etc) only Equifinance enables them to borrow up to the full potential of their actual earnings and has funding in place to deliver quickly.
If any of your clients have high adverse credit or difficulty proving all income (or both), please bear this lender in mind for loans up to £30000. Due to good levels of funding available loans are paid out quickly.
The new plans have been added to the Promise Sourcing Portal so you can compare them with other lenders If you have previously sourced a loan for clients needing more than £22K on a more “self cert” type product, it may be worth refreshing these enquiries on the sourcing system.
2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:
Mortgages and Remortgages
£80,000 over 240 months at an APRC OF 4.3% and a discounted variable annual interest rate for two years of 2.12% at £408.99 per month followed by 36 payments of £475.59 and 180 payments of £509.44. The total charge for credit is £39,873 which includes a £995 broker / processing fee and £125 application fee. Total repayable £119,873.
Secured / Second Charge Loans
£63,000 over 228 months at an APRC OF 6.1% and an annual interest rate of 5.39% (Fixed for five years – variable thereafter) would be £463.09 per month, total charge for credit is £42,584.52 which includes a £2,690 broker / processing fee. Total repayable £105,584.52.
£4,000 over 36 months at an APR OF 49.9% (fixed) and an annual interest rate of 49.9% would be £216.21, total charge for credit is £3,783.56. Total repayable £7,783.56.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you have been introduced to Promise Money by a third party / affiliate, Promise may pay them a share of any fees or commission it earns. Written terms available on request. Loans are subject to affordability status and available to UK residents aged 18 or over. Promise Money is a trading style of Promise Solutions Ltd. Promise Solutions is a broker offering products which represent the whole of the specialist second mortgage market and is authorised and regulated by the Financial Conduct Authority – Number 681423.
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