In the days before the credit crunch the home loan products of homeowner loans, mortgages and remortgages were easily available to self employed applicants. However this all changed and self employed soon found out that many loans were now beyond their reach.

Before the recession self employed people often found it simpler to be granted a remortgage, mortgage or homeowner loan than did those in full time employment.

Why this was the case was due to the fact that when applying for either homeowner loans or a mortgage the provider always considers whether the prospective borrower can comfortably afford the repayment of the debt.

Secured loan lenders generally take 40% of gross income to cover all the financial outgoings. These outgoings are the first mortgage repayment, the payment of the homeowner loan required and any other un consolidated loans and credit card repayments. The loan repayment taken into account is the actual monthly payment and 3% of the outstanding credit card balance is the monthly repayment taken into the equation.

The other debts were often able to be ignored because a common purpose for secured loans is for debt consolidation to clear off all other personal loans, credit cards, etc.

It was not unusual for employed applicants to be refused secured loans on the basis of insufficient earnings .

There was never any problem with tee self employed being refused a secured loan due to lack of enough income, as they only needed to self declare their own salary on their business note paper and no additional proof was asked for.

Some self employed declared higher net profit than they really did earn and fell into difficulty as a result.

Self certs., as they were known went out with the credit crunch and those needing a remortgage or a mortgage must have an accountants certificate or accounts.

For self employed unable to provide this proof of earnings, they are in the difficult position of not being able to get the finance they want

However for those self employed needing a secured loan there is one company who will accept a self cert for homeowner loans of up to 23,000 which allows applicants to obtain the loan they need.

Want to find out more about remortgages then visit Champion Finance’s site for the very best deal in a remortgage for you.