Self Employed Loans Used To Be Simple To Obtain.

Self employed secured loan applicants used to be able to obtain finance more readily than employed people.

Self employed loans, as long as they were secured loans, were easier to obtainn than employed loans were as self employed loans were never going to be refused on the grounds that the profit was too small.

All secured loan lenders accept a different minimum income.

In the past Blemain, for example, asked for a minimum income of 10,000 which could by no stretch of the imagination be considered high.

Paragon, the Solihull based secured loans lender, before they ceased granting new homeowner loans at the start of the recession, required a minimum household income of 15,000. They also had the requirement that one of the applicants earn at least 13,500.

This could rule out people who had upwards of 15,000 family income and if someone earned14,000 and the other say 13,000 was not enough.

This made little sense, as the scenario of 27,000 is 12,000 in excess of the minimum income required but neverthless it did not fit their criteria.

After this initial requisite, secured loan lenders in general accepted 40% of gross income to cover certain financial outgoings which in the case of homeowner loans was the mortgage payment, the loan being arranged and any unconsolidated credit on loans, credit cards, hire purchase, etc.

It was not unusual for employed people to be refused a loan as they did not earn enough.

The declined applicant could often have afforded the secured loan repayments as they had a smaller mortgage than the accepted applicant had.

At the same time an applicant, meeting the minimum income needed to borrow, could obtain a secured loan although more over commited financially that the declined applicant.

It was seldom a situation that self employed were turned down for secured loans due to shortgage of net profit as they simply stated their own net profit.

Self certs. was excellent for the self employed unable to really provide total proof on their profit wh who did not have an accountant.

Although often useful, some self employed abused the self cert. system.

by: Liz Moir

POST COMMENT

Replace Missing Teeth And Restore Your Self-esteem With Dentures Career and Self-Development: Motivation for Personal Growth Career and Self-Development: Working out Strategies BEST WAYS TO GET SELF-EMPLOYED LOANS Superb Ideas To Save On Trip Costs To City Vegas Plus Treat Yourself To A Trip Penis Exam by You - Penis Examination and Self Penis Test In Between Two Standard Wardrobes Build Yourself A Corner Wardrobe Simple Meditation Tips For Beginners And Busy People Harm To The Person Can Present Itself In Many Different Ways And Degrees Of Severity Five Simple Ways to Guard Your Self from Sinusitis Are You Digging Yourself Into An Early Grave By Being Overweight? Basic Principles Of Self Defense Cycling Training Program for Beginners, The Real Benefits?