What if you've tried your bank but they won't give you a mortgage for whatever reason... What options do you have then?
Although 95% of the loans we do are through the main banks we like to have an lending option up our sleeve to suit everyone.In this blog we detail some of the reasons why you might not fit a main bank and what the other options look like.
Why can't I get finance at a main bank?
- Not enough deposit
- Bad credit history
- Not long enough in business
- Poor loan repayment or bank account conduct
- Can't prove income
- Borrowing for a new business or non standard investment
The main exception is deposit - most non bank lenders will only lend up to a maximum of 70% of the value of your property. This is helpful if you're stuck with the new investor rules where banks can only lend up to 60% of the value of a rental property but it won't help if you've got just a 5% deposit. Main bank options generally start from 10% deposit and we can help you there if those other things are not a problem.
Who are these lenders?
So what's the catch?
Having a plan is key
It's really important to us when taking lending with a "non bank" lender that we have worked through a longer term financial plan with you so that we know exactly how we'll get you back to borrowing at a main bank. We really believe non bank lenders are just a short term fix.
We've had great success with people getting themselves established in business and then being able to take them back to a main bank. A common one is waiting for their credit or repayment history to be clear and then refinancing back to a bank.
So if you, or anyone you know, is struggling to get lending from a bank for one of the reasons listed above then we might just have an option to get them sorted so they can continue to work to their long term financial plan.
Contact us to discuss how we can help. We look forward to finding you the right solution for you.Adam, Claire and the team at My Mortgage