Difficult loans
Some borrowers are unable to satisfy the normal criteria set by lenders, and have difficulties in obtaining home finance. However, an increasing number of specialist lenders are providing loan products for borrowers whose circumstances are regarded by traditional lenders as too risky or complicated.
Who is likely to have difficulty?
Borrowers who appear to fall short of meeting the conditions of traditional lenders as derived from the requirements of the Uniform Consumer Credit Code (UCCC), and those who are unable to prove to traditional lenders their creditworthiness often have difficulty in obtaining finance:
- Self-employed
Without a firm financial record, and lender may not be prepared to offer finance.
- Migrants or others without a credit history
Where a person has no documentation acceptable to the lender, it is not possible to prove credit-worthiness.
- Credit impaired borrowers
Where a person has previously defaulted a traditional lender may not be prepared to investigate the circumstances to determine the true risk of providing finance.
- Contractors and part-time workers
Traditional lenders will be reluctant to advance funds to a person who cannot satisfy the lender as to continuity of employment.
- Unacceptable security
Some lenders will not accept small apartments or properties outside of the metropolitan area as security for a loan.
- Who will provide finance in difficult circumstances?
There are numerous specialist lenders who will provide finance in non-conforming circumstances.
Some borrowers use a specialist lender as a "stepping stone" to a traditional lender, refinancing after they have developed a good credit history (care should be exercised, however, as there may be hidden costs associated with refinancing in such circumstances). For further information about specialist lenders, see our section titled
Specialist Lenders. See also
Low Doc Loans.
If your circumstances are such that you may have difficulty in obtaining finance from a traditional lender, we will provide the assistance and guidance you need to source the home loan that best suits your needs. Simply
contact us for further information.
