Non conforming lenders(no doc/lo doc)
Non conforming lenders
Until 10 years ago, the only sources of these were solicitors and the Anglican and Catholic churches. There’s now a lot of new finance providers- eg, Freeman Fox Finance, GE, Peppers, Bluestone.
Upsides:
.Easy to get (with 25% deposit)
.Suits business owners and self employed
.Suits people with credit problems or no provability.
Downsides:
.Usually higher interest rates
.They’re quick and difficult to deal with if you default, Banks are “sooks” to deal with in comparisoj.\\n.
Ideal for:
. Self employed people with less than two years figures who can’t (or won’t) provide figures
. people who have reached a limit with traditional finance sources but KNOW they can service more
.Sort term finances until longer term finances can be arranged
.People who intend to pay debt out of capital
.People with sources of income not recognised by the bank.
Conditions:
. Usually 25% deposit for lower interest rates
. Interest rates are 0.5% to 3% higher than standard variable.
. No mortgage insurance
. Commercial lending terms (you MUST be aware of what you are signing)
. A statutory declaration is usually required to the effect that you understand all the terms (this bypasses consumer protection legislation),and that you can afford topay.
. A $2M maximum usually applies- perhapsless
Freeman Fox loans (Spann’s company):
. 20% deposit
. Max $500K per property.
. 7.57%
. (LOC similar numbers but 7.7%)
Non conforming lenders
Until 10 years ago, the only sources of these were solicitors and the Anglican and Catholic churches. There’s now a lot of new finance providers- eg, Freeman Fox Finance, GE, Peppers, Bluestone.
Upsides:
.Easy to get (with 25% deposit)
.Suits business owners and self employed
.Suits people with credit problems or no provability.
Downsides:
.Usually higher interest rates
.They’re quick and difficult to deal with if you default, Banks are “sooks” to deal with in comparisoj.\\n.
Ideal for:
. Self employed people with less than two years figures who can’t (or won’t) provide figures
. people who have reached a limit with traditional finance sources but KNOW they can service more
.Sort term finances until longer term finances can be arranged
.People who intend to pay debt out of capital
.People with sources of income not recognised by the bank.
Conditions:
. Usually 25% deposit for lower interest rates
. Interest rates are 0.5% to 3% higher than standard variable.
. No mortgage insurance
. Commercial lending terms (you MUST be aware of what you are signing)
. A statutory declaration is usually required to the effect that you understand all the terms (this bypasses consumer protection legislation),and that you can afford topay.
. A $2M maximum usually applies- perhapsless
Freeman Fox loans (Spann’s company):
. 20% deposit
. Max $500K per property.
. 7.57%
. (LOC similar numbers but 7.7%)