Until the tightening up of underwriting, since the start of the recession, financial products such as secured loans, mortgages and remortgages were just as available to the self employed as to the employed. The fact was, that in some cases, as regards, for example, income requirements, the self employed were at an advantage, and in other aspects they were equal to those in employment. There are a number of factors that lenders take into account when granting home loans, and the first of these is the equity available in a property. Equity is the main factor by dint of the fact that secured loans, remortgages and mortgages are all types of homeowner loans that must be secured on equity, which is the difference between the property value and the mortgage balance. Those with more equity can obtain a better rate of interest. Before the recession, employed applicants could obtain secured loans, mortgages and remortgages at up to 125% of equity, meaning that these financial products were available at 25% more than the value of the property.

This 125% equity plan was only available to employed applicants, but none the less, the self employed were also well catered for as they could obtain a secured loan, a mortgage or a remortgage at up to 100% LTV.

This did not place them in too much of an inferior position as regards equity. The second most important determining factor in being accepted for any of these three home loans, is the status of the applicant, with high credit scoring applicants being in a position to obtain a lower rate of interest than those with a poor credit rating. The same credit profile was accepted for both people in employment and those who were self employed. The third important feature for obtaining homeowner loans, remortgages and mortgages is the income requirements, and in this the self employed used to have the edge. This advantage of the self employed over the employed was due to the fact that lenders take a certain percentage of income when considering applications, and prior to the credit crunch the self employed could self cert their own income. A self certification is the declaring of income without providing accounts, an accountant’s reference or any other type of official proof.

Some self certs were inflated, with the borrower overstating their net profit, to make certain that their income would lead to approval for self employed loans, remortgages, etc.

The employed on the other hand, could not do this, and had to provide wage slips showing their actual salary.

Self employed people gained over the employed in the income stakes, and only ranked behind a little regarding the equity in their property.

Changes to the position of the self employed requiring a home loan altered, and many of these self employed were really struggling to obtain any kind of a loan.

Champion Finance have been established since 1985.They provide secured loans from all homeowner loan lenders. They arrange good interest self employed loans for homeowners without full accounts.. Remortgages and mortgages are available from the whole of the market. Debt advice, debt help and all debt solutions are also available.

Prior to the credit crisis it was possible for self employed people to get a secured loan or a remortgage by declaring their own income without any back up proof. This was often wide open to abuse, as many applicants for remortgages and secured loans were of course prone to exaggerate their income to obtain the loan or remortgage that they wanted. 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 business card or similar, and no additional proof was required in the form of bank statements, 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 mortgage 300,000 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.

Future Mortgages were even prepared to accept self certs of income from employed applicants with the same disastrous results as for the self employed. Many self employed are no longer 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 a lender, back in business, who withdrew from the secured loans market last year who are willing to provide homeowner loan to those who have been self employed for only six months without accounts.

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. There are secured loans available to help.

When you are seeking a mortgage, remortgage, secured loan or debt advice look no further than Champion Finance. They have been established since 1985 and arrange whole of the market secured loans, remortgages and mortgages. Debt advice, debt help, debt management, debt consolidation and all other debt solutions are also available to help those in debt to become debt free.

The self-employed have typically got a raw deal when it comes to remortgaging, having to pay mortgage rates more in line with those offered to people with a poor credit rating, even though the self-employed applicant has never had financial issues of any type. A myriad of occupations fall within the self-employed category from professional, skilled trades people such as plumbers and carpenters, teachers, to freelance writers and commission-based workers.

Mortgage loan lenders have typically made it fairly tricky for the self-employed to take out home loans and when they did ponder a self-employed applicant for a mortgage loan it would normally only be on the presentation of three years audited accounts, which usually is not much help if you’ve only just started your business and are perhaps looking at remortgaging to release some equity from your property to help fund your business.

Nonetheless, a few mortgage loan companies today provide self-certification mortgages where the applicant estimates their yearly income as opposed to an employer or an accountant being used to assist their claim. Usually, credit scoring is not a main concern for lenders when processing such applications. Nonetheless, self-certification isn’t really a passport to instantaneous and vast amounts of money. Your credit rating will be looked at as with any other remortgage application and many of the other processes involved with remortgaging will remain the same.

You’ll find that interest rates for self-certification remortgages are slightly above the typical standard variable rates offered by lenders. Like with other remortgage applications your personal circumstances will be taken on their merits and can be reflected in the loan amount and rate of interest offered to you.

Edward has been writing online and offline for more than 5 years. His latest site at http://www.smallportableprinters.net covers the small portable printers available and give information and advice about them.