A non-bank lender has said the withdrawal of banks from the low-doc lending space will create great opportunities.
Homeloans Ltd has reinforced its commitment to the specialist alt-doc sector saying it is well positioned to take up the volume of loans previously going to banks.
Daniel Carde, Homeloans’ general manager, third party distribution, said, “We have been offering specialist alt-doc solutions for many years and have a team of loan underwriters who are well versed in how to assess these types of applications.
“We have always been strong in the self-employed and small business-owner sector - and that includes both alt-doc and full-doc solutions - and will continue to service this borrower type well into the future.”
Homeloans offers a range of flexible alt-doc solutions for self-employed borrowers to cater for a variety of lending scenarios.
Carde added, “With our wide range of prime and specialist alt-doc products, brokers can choose the right solution for their clients’ needs with one submission and credit check. Alt-doc rates start from 4.54% per annum, comparison rate 4.72% annum.”
Carde said a key point of difference for Homeloans is the options it provides for income verification, which is often highlighted by brokers.
He added, “By offering a choice of either an accountant’s verification, business activity statements or bank statements, we are catering to the broader market and making the loan application and approval process more straightforward.”
Taking into consideration the size of the alt-doc market and its growth potential, Homeloans recently cut rates on its Accelerate Red Alt Doc range, with rates now starting from 5.09% per year, comparison rate 5.38%, until 31 August.
Carde said, “With the end of the financial year having just passed, many self-employed borrowers will know their income position for FY18 but won’t be preparing or submitting their tax returns for some months. For this reason, alt-doc loans tend to be more front of mind at this time of year, so it made sense to highlight just how competitive Homeloans is.”
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