New Finance Options Forgive Past Mistakes
A partnership break-up, either in business or at home, no longer needs to hold the financial disaster it could, says
specialist mortgage banker, William Cairns.
A single mistake in either a business venture or marriage can often see assets sold or income slashed, he says, and in
some cases a blemish appear on what otherwise would be a clean credit record.
In the past, this could spell financial disaster, with some having difficulty finding access to finance for a new home
or to refinance the existing, let alone the establishment of a new business or income earning opportunity.
Cairns says the development of specialist “non- conforming credit” products are designed to effectively give
“second-chance” opportunity to those facing this type of situation.
“One mistake shouldn’t necessarily mean carrying a life-long financial burden,” he says, “ particularly when the lending
risk involved is only slightly greater than before a credit record was blemished.”
He says that until now, the difficulty for some people in this situation has been the inability to get passed the rigid
lending criteria enforced by the major banks and lending institutions.
Now though, his company General Finance Limited is providing mortgage-based finance to those with an incomplete credit
history and unable to source finance from traditional lenders.
He says his company is able to provide this service simply by taking a different and longer-term view of credit risk.
General Finance offers a floating rate 25 year loan facility for those with an incomplete credit record, or fixed rate
loans for a maximum of 5 years for business, investment or personal purposes for people who cannot verify income or who
have an imperfect credit record.
Cairns says that while these facilities attract a slightly higher rate than standard mortgage products, that is more
then out-weighed by access to funding that otherwise would not be available.
Cairns says the products have now also become recognised by a growing number of self-employed persons who often earned
above average but inconsistent incomes and were not able to demonstrate to banks the earning consistency their loan
criteria demanded.
Cairns says the non-conforming market currently accounts for around 15 percent of the total mortgage market. He expects
that volume to double over the next 12 –18 months.