Self employed or have irregular income?

Self employed or have irregular income? Here’s how you could still get your home loan application approved.

Traditional lenders like traditional income. But in real life, people earn money in different ways: from the self-employed, shift work, casual work, and more. You’ve got a subset of Kiwis who are very successful on their own merits, but they could be shut out of ‘prime’ or ‘bank’ loans simply because they don’t fit the credit criteria.

Broadly speaking, there are some key reasons that a borrower may not meet the lending requirements set out by banks or ‘traditional’ lenders. For some borrowers it may be a case of not meeting the credit scoring requirements; for others it may be down to an impaired credit report; or, for some, it may be because they cannot provide the traditional income verification documents required by mainstream lenders.

Specialist loans are therefore, as the name suggests, designed to provide special financial options for borrowers who are unable to meet the requirements of traditional lenders for a wide range of reasons.

Non-bank lenders are in the business of providing these real-life solutions – particularly in the specialist lending category. They generally offer a range of flexible options for the growing number of customers who may be finding it difficult securing a loan through the banks, and other traditional lenders.

Instead of using algorithms non-bank lenders take a more flexible, human approach that allows them to assess home loan applications individually as part of their responsible lending assessment. Non-bank specialist loans are suitable for all sorts of people from blue chip to blue collar, to help customers achieve their goals – particularly when they may seem out of reach.

Non-bank lenders have been around for a long time, and intimately understand the needs of the self-employed and specialist borrowers that typically need flexibility, transparency, and a quick response as well as completing responsible lending checks and considering a borrower’s individual circumstances.

Demand for specialist lending options is growing quickly – more so than ever. More Kiwis are seeking the assistance of non-bank specialist lenders – from the growing self-employed market to people with different types of income, those recovering after a life event or building a property profile; the need for alternative and specialist lending is likely to continue to grow and build momentum.

Non-bank lender Pepper Money has years of research and experience to show that borrowers are looking for someone to take the time to understand their circumstances and demonstrate that they genuinely want to help them succeed. Financial advisors are uniquely placed to offer a broad range of options for borrowers – so it could be worthwhile having one in your corner.

Your financial adviser may be able to give you some non-bank specialist lending options to consider – particularly because these lenders look at a customer’s wider circumstances to see if the borrower is in a position to service a loan and meeting responsible lending requirements. Looking at customers circumstances on a case-by-case basis means they could lend to borrowers in circumstances that may not meet other lenders criteria. They don’t let the type of employment, past, or ‘rough times’ automatically define the customer’s future.