Hard money loans
If you need cash to fund a purchase such as a foreign holiday, home improvements or to set up a business taking out a hard money loan may be the answer. Hard money loans provide borrowers with instant access to cash funds. Lenders will typically deposit the hard money funds in the borrower's bank account within 5 working days of the loans application being approved.
Who can apply for hard money loans?
Anyone can apply for hard money loans, although the loans market favours borrowers who are homeowners and have a good credit history. There are however several specialist hard money lenders - many of whom operate on the Internet - that will entertain loans applications from tenants, homeowners with a bad credit history and also loans applications from people classified as self employed who are without three years of audited accounts.
How are hard money loan applications made?
One of the best places to look for hard money loans is on the Internet. Most major high street lenders who offer hard money loans have an online presence, as do a variety of specialist lenders as previously mentioned. Most lenders also provide access to online application forms for hard money loans. This means that you can apply for a hard money loan within minutes and submit your application across your Internet connection.
For people connecting to the Internet on a dial-up system, hard money lenders normally configure their online application forms to be useable offline. This means that the applicant can disconnect from the Internet while they fill in the hard money loan application form, saving them money on their phone bill during the application process.
To make a loans application most lenders will ask you to have the following information to hand: -
Net monthly income - This is your 'take home' pay, so the money that was actually in your wage packet or deposited into your bank account by your employer. Your net income is different from your gross income, the latter of which includes tax and NI. Loans companies may require you to prove your income by asking for your payslips from the last three months.
Monthly household expenses - This will be a list of all expenses you have going out each month. You'll need to include your mortgage/rent, gas & electricity bills, pension payments, council tax and payments to service outstanding credit card balances and other loans.
Bank account details - Bank account details are needed as proof that you have a bank account, as well as for setting up a direct debit for loans repayments on your hard money loan.