subject: Self Employed With No Accounts Can Obtain Secured Loans Instead Of A Remortgage [print this page] Until the beginning of 2007 remortgages, mortgages and secured loans were readily available to the self employed without any concrete proof of income, and income proof, so called, was based purely on a self certification of income by the applicant.
Many people took advantage of the slack underwriting to obtain a bigger home loan than they could afford.
Those with their eye on a fancy new house would hike up their income to obtain a large enough mortgage to purchase their dream home.
These self declarations of income really were purely self certifications with the self employed simply stating their net profit on a letter head or on a plain sheet of paper accompanied by a busines card or similar, and no additional proof was required in the form of bank statemements, an accountant's certificate let alone full accounts.
It is only natural to want an expensive house but unwise to over state income to obtain a large mortgage300,000 self certifying an income of 100,000 or more to obtain the mortgage, when in reality the annual profit was well short of the 100,000 and was more in the region of 30,000.
It was possible for employed people to declare their own income to obtain homeowner loans from Future Mortgages.
Many self employed are no lomger eligible for a remortgage or a secured loan as they have no real proof of what they earn They also unfortunately cannot get a mortgage to buy a home.
Sometimes this is a bit unfair when people receive cash and cannot prove their real earning power. This is often the case with hairdressers and tradesmen such as carpenters, plumbers and decorators who mainly carry out work for private individuals.
Self declarations of net profit was similarly abolished for the self employed requiring a secured loan, which is a loan available to homeowners that can be used for almost any purpose, including debt consolidation.
There is now good news for the self employed who find themselves in this predicament, as one secured loan lender has re entered the market and is offering secured loans to those who have been self employed for a minimum of only six months.
Three months bank statements are needed to prove that the applicant is earning and really is self employed. The maximum LTV, that is loan to value, is a maximum of 60% and the maximum secured loan available on this plan is 30,000.
