Focus On
Non Prime
As the impact of the credit crunch has rumbled on for the last year or more non prime options have reduced dramatically and as such finding finance for applicants with damaged credit histories is far more challenging.As a general rule 60-65% of a 90 day forced sale value is the maximum available.
OVERVIEW
- May have no adverse – but unable to prove income e.g. start up
- May have adverse from missed credit card payments through to CCJ’s etc.
- Pricing higher than prime although ltv's also higher generally.
- Freehold property – Bricks and Mortar valuation only.
- No goodwill finance available.
- Can repay over 30 years normally. Interest only may be available up tfor life or say a period of 12 month. Can potentially obtain up to 100% with additional security.
- Please use as a guide only – each commercial application is unique – as is the property etc. so, always call to discuss.
- Trading accounts not required but if available can reduce interest rate – either the business being purchased or being operated now – three years full accounts are best.
- Affordability can be assessed through accounts or self certification/rental.
Tips
- Ask for the property particulars if buying.
- Ask for the old valuation if refinancing.
- Ask for 12 months mortgage history if refinancing.
- Always be clear on the repayment source.
- Business plan’s generally not required.
