3 reasons a customer might need a specialist lending solution

When you join a specialist mortgage franchise like Redrock, you’ll have the chance to help Australians who might struggle to access mainstream finance to get into their own homes.

Here are three common reasons people need a specialist lending solution.

They don’t meet mainstream lending criteria

Mainstream lenders rely on credit scores to a large degree when making their decision about which loan applications to approve and reject. People whose credit scores are below the level a mainstream lender will accept may see their application denied. This, unfortunately, can actually make their credit score even worse, as well as making it harder to get a loan as other lenders will see they’ve been rejected and not want to take the risk. It can quickly turn into a vicious cycle.

To get out of it, borrowers need to prove to the credit rating agencies that they’re worthy of being lent to. This is where a specialist lender can help. By affording loans to those with sub-standard credit rankings, borrowers are given the chance to demonstrate their ability to pay off debts as well as getting a head start on building equity in their home.

They’ve recently become self-employed

Starting a business or having income that’s not easily proven through tax returns or paycheques can make it tremendously difficult to get a loan. For these people, meeting the documentation requirements that a mainstream lender demands often just isn’t possible, despite the fact they may have more than adequate income to cover their loan repayments.

The specialist solution for these customers is a low doc loan. The documents required are far fewer – sometimes all that’s needed is an accountant’s letter, a business banking statement or business activity statement, a 20 per cent deposit and to have been in business for at least six months with an active Australian Business Number.

They have an impaired credit history

People that have been discharged from bankruptcy (meaning they’re no longer considered bankrupt), have many late payments or mortgage arrears, defaults, judgements or writs on their record, or have Part IX or X debt agreements will often find it harder to be approved for a loan. A specialist lender can help by tailoring a solution for their specific situation.

With Redrock, you have the chance to own a mortgage franchise with a difference. Instead of relying on simplistic box checking, we take the time to look into each and every application, and judge it on its actual merits. It’s the opportunity to work in a field that’s not only booming, but helpful to everyday Australians. To learn about our franchise opportunity, apply for a free information pack today.