Can I borrow if I don't have a full set of three years profitable trading accounts?
Wed, 07 Nov 2007
Yes. There are lenders who can help with commercial mortgages or bridging loans if you do not fit into the clearing banks' pigeon holes.
The mainstream banks' lending criteria normally require you to provide three years worth of accounts showing sufficient profits with which to service the proposed mortgage payments and no catastrophic trading losses in any one year.
If you are not able to provide full accounts meeting the tests referred to above (because for example your business is a start up), then you can still borrow by ‘self certifying’ income which essentially means that you confirm to the lender that you believe you will be able to make the payments, but the lender will charge a higher interest rate for the risk they are taking.
Many of the lenders who provide self certified loans also have high redemption penalties for the first 5 or 6 years as they expect those borrowers whose ability to borrow improves to seek to remortgage once they are able to do so. Some of these redemption penalties can be reduced by paying an additional upfront fee at the time of taking out the mortgage.
To see which lender meets your requirements use the loan finder service on this site.
