It was never a problem understanding what had to be provided as regards the income required for employed people applying for secured loans, mortgages or remortgages. What was required as proof of earnings , is now the same as it always has been and this is three recent salary slips which must be consecutive, This m8ust be produced for all loan borrowers.

Secured loan providers in general accept that 40% of the total earnings of the applicants must be sufficient to cover the monthly mortgage payment, the secured loan payment and all other money to be paid for credit cards, personal loans, etc. that is unless the secured loan is being used for debt consolidation

Some loan lenders accept up to half of the applicant earnings if they have a fair amount of income..

As regards a remortgage and a mortgage, the income multiplier is different between one mortgage lender to the next, and some lenders accept three times an applicants income as the maximum mortgage amount , and there are those who accept as much as five times what someone earns.

For example if a mortgage applicant or a remortgage applicant earned 50,000, he would be eligible for a remortgage or mortgage from 150,000 to as much as 250,000.

Due to the fact that there are very strict rules about the amount of income taken for secured loans, mortgages or remortgages, people can be refused if income is not enough…

Before the recession, this was never happened to the self employed as they could declare their own net profit when applying for any of these home loans..

This income was known as a self cert of income, and it meant that the self employed could tell lies about what they earned to get mortgages to purchase the property that they had in mind. They could also readily get a remortgage or a secured loan if they needed one to buy a car, take a holiday, etc. etc. They often used remortgages and secured loans as debt consolidation loans.

Therefore the self employed had enormous advantages compared to their employed relatives but this all came to an end at the credit crunch.

Looking to find the best deal on consolidation loans then visit www.championfinance..com to find the best deals on self employed loans for you.

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