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What Companies when you CANT get finance?

Discussion in 'Property Finance' started by Darlinghurst Boy, 9th Aug, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    i take it that Pepper is a last resort Company that brokers will use?

    Also is there any harm to your client in using them?
    For example later down the track another Bank found the client had used Pepper?

    What other Companies are good for people that cant get loans.
    I know one called Les Gold and Services but do many have to go that far ?
     
    Last edited: 9th Aug, 2015
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Pepper have some standard type products, but they are usually a lender for people with problems.
    Therefore there may be a question of why they used them, but this should really effect any subsequent loan application.
     
  3. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    There interest rates are obviously higher . Are they over 6%
    There seems to be a few of these Companies around.

    I think theres one called Bluestone whose interest rates hit 10%?

    Do you Brokers have to resort to these Lenders much and what type of clients would use these type of Finance Companies?
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Pepper Variable interest rates start from 4.24% p.a https://www.pepper.com.au/home-loan-products/pepper-essential

    There are a few of these non conforming type lenders. Pepper, Bluestone, Liberty, La Trobe etc.
     
  5. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    The probability of Lenders like peppers jacking up rates extraorbitently is very high, given their niche of clients who can't go any where else.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    These sorts of lenders tend to be good only for credit impairment type people. Serviceability still has to be passed.
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Pepper is trying to rebrand and offer some competitive products. In reality - it's still a name that equates to "non-conforming"

    What lenders do we use? Personally - it's not a space I deal in but it largely depends on the nature of the clients credit history. Small defaults that can be explained don't need to go down the non conforming path. Larger defaults/credit issues do.

    Cheers

    Jamie
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    In all my years I have only used Pepper about twice. Its a specialised lender for special clients.
     
  9. Redom

    Redom Mortgage Broker Business Member

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    The answer to this will depend entirely on why you can't get finance.

    Pepper's actually a relatively large company for those 'that can't get finance' - usually used for those with credit history issues. Other reasons can be: serviceability, policy issues, lack of deposit, commercial, etc.

    Can use a whole range of smaller private funders to get deals over the line - i've never done a deal with them before, but you could go to certain churches to get funding.

    I also believe a few brokers on SS/PC through the days have private funding lines (similar to CC rates!) available for those that are desperate.

    Cheers,
    Redom
     
  10. Redom

    Redom Mortgage Broker Business Member

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    Pretty sure thats a 55% LVR P/I no cash out option. Rates are around 4.7-4.9 for 80-85% LVRs, depending on purpose/structure.
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Ha ha - Yes probably. Good for advertising purposes tho.
     
  12. Redwood

    Redwood Well-Known Member

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    There is a lender called RedZed that I use, they are non bank and have approved some loans that most others would not touch. Of course, this means the scenario was 'tough', including low doc and credit impairment. Rates are fairly good however the process is quite slow. Another mob I use is Better Mortgages - mortgage manager obviously - can provide a wide range of options for the difficult scenarios. As Redom has mentioned, private lenders are an options. I use http://www.vernonsolicitors.com.au/ - Raoul Vernon runs it - top bloke.

    Seen a heap of people get ripped off by private lenders though when all other avenues are closed....

    Cheers Ivan
     
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  13. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Keep in mind there's lots of reasons why people can't get finance. Some of the non-conforming lenders tend to work best for scenarios where people have past credit defaults, are late in their payments, etc. Other reasons why people might not get finance might include the nature of their employment, something strange about the security property or if their deposit is considered "genuine savings" or not.

    Not all of these problems require a Pepper or Liberty to solve the problem, nor does it always result in higher interest rates. When people are rejected for finance, what's most important is they understand why they were rejected so the problem can either be removed or a lender that can deal with the problem can be applied.

    Even with a default, it's possible to get mainstream finance if it falls within certain parameters.
     
  14. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    I recall one of the posters on here saying
    Basically it proves anyone CAN get finance .
     
  15. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    Also remember that the non conforming or short term business lenders are only designed for filling a gap.

    Often it is a matter of waiting a year until your Tax Returns look a little more rosy or having the default or judgement removed and then refinancing.

    These lenders are not designed for long term property holding.

    In saying all of this there are many ways of getting a deal done away from using such organisations.

    My theory is they serve a purpose for particular clients.
     
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  16. Joshwaaaa

    Joshwaaaa Well-Known Member

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    Quick question since we are on the subject, we just built a place and moved in, its about 60% lvr. Went for an equity release just to finish off driveways, landscaping etc around $15k and got knocked back due to credit hit for my misses from 2005 which only got added in feb this year a month after getting the build loan approved. Our broker has pretty much told us too bad so sad cant help you.

    Serviceability isnt an issue but i have our old ppor 100% in my name we are currently prepping for sale, therefore no rental income and is me maxed out pretty much between the 2 loans in the banks eyes. Are there any other option for us to access funds besides a personal loan. Getting very sick of trekking mud through the new house.

    I know once we sell our old ppor it should be easy but that could take months with how slow things are around our area.
     
  17. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Why did you get knocked back because of a credit check?

    It does sound like a serviceability issue to me. You might just have to try another bank.
     
  18. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    When you say a credit hit do you mean a default was registered as if not i am at a loss why your existing Bank would say No.

    Personal loan or private loan might be an option especially over a short period of time otherwise rate is going to be expensive.
     
  19. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Motor Finance Wizard says YES!