How is lending criteria different for second mortgage lending?

The lending criteria for private lenders vary a lot with banking finance. By comparison, businesses can enjoy the simplicity of the second mortgage loan lending criteria. See below some lending criteria for second mortgage business finance:

• Firstly, the loan must be for the majority business purpose.
• Consequently, greater than 50% of the second mortgage finance must be for business purpose.
• Secondly, minimal or no income verification is required for most loans.
• Thirdly, short term and start-up business ventures finance with one day ABN registration.
• Fourthly, the second mortgage loans are useful when funds are needed urgently.
• In particular, debt consolidation is available for tax debt and other business debt.
• Importantly, some private lenders don’t require property valuations. Therefore, online or real estate agent valuations may be acceptable.
• Also, credit defaults, court judgements, and various insolvency can be accepted.
• In particular, fixed interest is payable for the loan term. However, some lenders offer variable rates.
• Certainly, LVR’s available are generally to 80% inclusive of capitalising interest and loan set up costs.
• Otherwise, if the tax debt is a personal debt, then you may need to refinance a home loan to pay the tax debt.
• Finally, 2nd mortgage loans or caveat loans can be used to pay a business debt and mortgages in arrears or land rates arrears.

Related Information on second mortgages.