Hi,
I am getting a little frustrated chasing loans.
Let me explain…
Due to a personal guarantee on a business loan I was made bankrupt (the business creditor forced this on me), and have recently been discharged (July this year) after serving my 3 year “term”.
I have started a new business (computer consulting) in the same month and it going ahead in leaps and bounds.
Have already put aside $25K from company profits as a deposit and put aside funds for gst, and future company tax. Pretty happy with that from 3 1/2 months of trading!
My problem is getting a loan.
Because of the combination of coming out of bankruptcy and starting a new business I am having a hard time finding finance.
The problem is either 13+ percent interest rate or a max LVR of 65%.
Is there a lender out there with a somewhat decent interest rate and reasonable LVR for someone in my circumstances?
I understand I will have to pay a higher interest rate, but around double seems more than a bit excessive.
I have fully up to date company accounts (yes only 3 1/2 months of trading) and all personal tax returns in, so I am not needing a low doc or no doc loan.
Any ideas?
By the way I am looking to buy the first property to live in with my partner, but will be buying additional properties in a family trust structure for investment.
My partner has no credit problems, but does not have a large enough income to get a loan in her name, and besides we really want to get my credit back on track.
Would welcome any comments.
Thanks
Hi Intirnsic,
13% is way to high for a 3-year discharged bankrupt,
Contact a decent mortgage Broker who has access to a wide range of lenders.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi
13% sounds very high!
There are about 5 main lenders (non-conforming) that could help you. eg. Discharged bankrupts (more than 1 year) could get up to 90% at 9.99% with Bluestone. but having only recently started your business will make it harder. With Bluestone, if you have less than 12 months trading history, the LVR would be a max of 75% with an interest rate of 9.29%.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by Mobile Mortgage:Hi Intirnsic,
13% is way to high for a 3-year discharged bankrupt,
Contact a decent mortgage Broker who has access to a wide range of lenders.Thanks for the reply!
I was only discharged in July this year after being bankrupt for three years.
Do the above comments still apply?
Originally posted by Terryw:Hi
13% sounds very high!
There are about 5 main lenders (non-conforming) that could help you. eg. Discharged bankrupts (more than 1 year) could get up to 90% at 9.99% with Bluestone. but having only recently started your business will make it harder. With Bluestone, if you have less than 12 months trading history, the LVR would be a max of 75% with an interest rate of 9.29%.
The existing broker I talked to in Adelaide quoted 10.9% with Bluestone and 13% from liberty.
Would rates vary this much or is he getting a cut of the interest rate?
Less than 10% would be great if I could get a LVR of 80%. What are my chances?
Any other non confirming lenders out there? I know of pepper home loans but they have ignored my emails as I asked them for an Adelaide broker using their products.
Is it politically correct to ask for mortgage broker(s) to contact me on this board?
Thanks
Disharged July this year,
You will be considered BBB with Bluestone,
PAYG, 80% LVR around 9.99%For recent self employed, Bluestone, BBB Business Easy, 70% LVR around 10.49%
Bluestone currently have a 1% discount until December 2005
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Pepper,
PAYG
80% LVR 10.6%
75% LVR 9.25%
70% LVR 8.95%LOW DOC 75% max 9.65%
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
[/quote]
Is it politically correct to ask for mortgage broker(s) to contact me on this board?
Thanks
[/quote]
Hi intrinsic
By all means ask to be contacted, but I would not advise divulging your personal details, Phone number etc on the forum,
You can request to be contacted by e-mail or PM (private message)
Or you can contact any member of the forum via the PM function,Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi,
Sorry to jump on the coat-tails of the thread, but it is topical for a deal I am looking at right now.
Could a broker comment on the loan options for a recently discharged bankrupt (2 months), self employed tradesperson, income around $90-$100K, about $25K cash for a deposit, parnter & 3 kids, what is the sort of loan product, LVR and rate likely to be offered by either a bank or non-bank lender to buy a house?
Thanks
skippygirl [biggrin]
Hi Skippy Girl,
Today Pepper announced a 3.61% discount off there non conforming range until 31.3.05 after this period the rate will revert back to the appropriate rate for that particular product,Based on your situation & assuming this would be a Low Doc, you would be looking at a rate of around 7.99% reverting back to 9.65% and 75% LVR.
Bluestone, around 10.49% and a 1% discount until December 2005 @ 70% LVR.
Please note these figures are a guide only, there may be other options available to you.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Intrinsic,
You sound like a good candidate for vendor finance.
As a guide, these non conforming lenders have a credit matrix whereby they rate the applicant in terms of risk. Each lender is different, but most have about 5 ratings. Each rating has a different interest rate to reflect the risk. Low Docs are also a bit higher in interest rates, and rates also rise as you go higher with the LVR. If someone is a recent bankrupt of less than one one year, they may save about 0.60% if they waited until after 12 months.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Mobile Mortgage,
Luckily it’s not me, I love my AAA.
It’s a potential wrap buyer who is comparing what he can get in terms of loan products c.f. the vendor terms I’m offering him.Thanks again.
Cheers
skippygirl [biggrin]
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