A lot of commentators and experts have been predicting them for a long while but for many small business owners, green shoots are finally coming through.

Hilton-Baird Financial Solutions has found that almost half of all UK small business owners are growing increasingly bullish about their own business’ growth prospects – if you are one of these owners, you might want to consider a new, cheap commercial mortgage to help water those green shoots.

If you do think it's time to consider a new loan for an office space, a new farm, a bigger warehouse or even a shop then you have to talk to a professional mortgage adviser. Not only will they explain everything for you, but they will talk to the lenders for you and help make you the best commercial borrower possible.

Hilton-Baird's survey proves this service is needed – it says only 12% of small businesses have secured new external funding over the past six months which could dent long term growth prospects if left unchecked. If more of the UK's small business owners had discussed their options with a commercial mortgage expert, a few more may have been more successful in securing funding.

Evette Orams, managing director of Hilton-Baird, says: “It’s vital that business owners remain vigilant and plan ahead if they are to safeguard the long term health of their business. A good starting point for small businesses is to consider the full range of funding options available to them."

SOURCE: Hilton-Baird, 13/04/10

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You may have worn yourself out walking up and down the high street unsuccessfully trying to get hold of a mortgage – and you may not know why you keep being turned down.

It's the same old story – you go into a bank or a building society and you are told that you do not meet their lending criteria. You may have even gone online to see if you could get a loan that way, only to find that your electronic attempts were also in vain.

But why are you being denied a loan? You earn good money each month, you are able to pay all your bills and you are confident that the loans that you attempted to sign up for were within your price range.

The problem may be that the banks and building societies simply do not recognise your income. You may not earn a regular monthly pay cheque – you may be a freelancer, you may run your own business, you may work two jobs, you may get a lot of your money on a commission basis or you may rely on bonuses to be able to afford to pay your way. All of these are common ways to earn money but few lenders will trust them.

All these forms of income demand self cert mortgages – specialised loans that are designed for people who do not earn a regular income. They are offered by specialised lenders who assess their potential borrowers on a case-by-case basis.

You have probably not heard of this type of lender or even this type of loan because they are only found through specialised mortgage advisers. So if you want to get hold of a loan and are tired of hearing no, talk to a specialised self cert mortgage adviser who can help you get hold of a specialised loan from a specialist lender.

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More than a quarter of small businesses in the UK believe that they will become insolvent if the economy suffers from a double dip recession – if you think your debts are not on a safe footing, talk to a small business financial adviser right away.

Research from insolvency body R3 suggests that although the UK has emerged from recession, many businesses have been worn out by the struggle to stay afloat – 28% said they would not be able to survive should the UK fall back into a recession. Their finances are simply too precarious and their debts have pushed them to the limit – any further loss of earnings would mean the end of their businesses for sure.

Peter Sargent, president of R3 says: "Many struggling businesses drew heavily on their reserves in order to survive and their resources have now begun to run out – it seems that a large number of businesses are in need of a financial health check.

"The journey back to recovery is slow and uncertain and we advise any business owner who believes their company may be on the path to insolvency to seek help sooner rather than later."

If you think your debts are stretching you to the very limit, talk to an expert about rearranging your finances so as to make them more manageable. While a double dip recession is unlikely, it is unhealthy to run a business on empty – get your debts in order and make your business safe again.

SOURCE: R3, 27/03/10

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If you are someone who must opt for a self cert mortgage then you must be sure that you have a good credit score otherwise the chances of securing a loan are slim.

Credit scores are essentially documents of your credit history – a documentation of how well or how badly you handled debt in the past. It shows all your past responsibilities and how often you paid, or missed those debts. It is with this that a lender makes a decision on whether they will lend a borrower a mortgage – and this goes double for those who struggle to prove their income.

But worryingly, more than 10 million people could fail a credit score because they do not have enough credit history or appear on the electoral register, according to Kensington Mortgages.

The survey found that 13% of people have not taken out any financial product since before the year 2000. With credit agencies unable to access data on accounts opened before this date, it means that these six million people may not have enough activity showing on their credit record to pass an automated credit score. In addition, more than four million people do not know for sure whether they are on their local electoral register, which again could seriously hamper their chances of passing a credit score.

This means that over a fifth of the adult population could be prevented from getting a mortgage by lenders that operate rigid automated credit scoring system – many of whom could be self cert mortgage borrowers.

Charles Morley, head of sales and product development at Kensington, says: “Many good borrowers are being prevented from getting a mortgage because their circumstances are slightly more complicated than can be accommodated by an automated credit score."

If you cannot easily prove your income you need to speak to a mortgage professional about how best to get hold of a mortgage. It will certainly mean making sure you have a good credit score, so ask an expert what you have to do to be the best borrower possible in the eyes of a mortgage lender.


SOURCE: Kensington, 18/03/10

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Many mortgage professionals have been concerned that people who do not fit into the strict definitions of high street banks' affordability calculators would never get a mortgage – but as ever the innovative UK mortgage industry has found a way for those who cannot fully prove their income to get a home loan.

Several mortgage lenders, including Kensington Mortgages and Aldermore, have launched "complex prime" mortgages to help those people who have the money but cannot get a mortgage from a high street bank.

There are millions of Brits who have irregular incomes and would usually get turned down by banks. But with complex prime, mortgage brokers can put forward a potential borrower's application to an underwriter, who assess each case on its merit.

Charles Morley, head of sales and product development at Kensington, says: "There are a lot of prime customers out there who want a mortgage but are excluded by the big lenders because they fail an automated decision. But we are well positioned to consider self-employed borrowers, people who receive regular bonuses or overtime and customers whose circumstances are too complex to meet the rigid criteria of an automated system.”

If you have been turned down by other lenders talk to a self cert mortgage expert about complex prime mortgages. They may be able to help you find a deal tailored round your individual circumstance by mortgage lenders who understand that people cannot be put into a box.

SOURCE: Kensington, 08/03/10

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It sounds rather morbid, but it is vital that all self certified borrowers assess their finances and prepare them in the case of their death.

It's a common misconception that you should only think of death when you are old but what would happen to your finances if you suddenly died or was taken seriously ill? Who would benefit and who would lose out? These are questions that must be answered while you are fit and healthy.

You have to make sure now that those who you want to benefit – your family – do benefit and those who you would rather see left out of pocket – the taxman – are steered clear of your estate. But luckily there are simple processes to assure this which can be organised with the help of a self cert mortgage adviser.

The first thing to do is to make sure you are covered. That means taking out the right life insurance, critical illness cover and income protection. It is an extra outgoing each month, but it is one that will help you solve the question of how your loved ones will be able to carry on paying the mortgage should something happen to you.

The next step is to get your estate in order. This is not just an exercise for the wealthy – everyone should have a will. You can decide now who gets your home, your business and your assets. You can even lock them in trusts now so the taxman cannot get hold of them later.

No one wants to think about their mortality, but if you own a home and self certify your own finances then you have to have a plan in place to make sure your loved ones are protected and that your assets are safe, whatever happens to you.

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You might have spent the last year comfortable on your self cert standard variable rate and the latest Bank of England decision to hold the base rate at 0.5% for the 12th month in a row will only make the decision to stay with your SVR easier – but should you be considering moving off the lender's default rate?

One year ago this month the Bank of England ended six months of dramatic rate cuts to try and stave off the effects of the recession, leaving base rate at a record low of 0.5%. Since then many people who had self cert mortgage rates have just stayed on their lender's low rate SVR, which follows the low base rate.

But is it time to consider changing? It doesn't seem like it at first glance, and the experts are predicting that base rate will stay low for some time to come.

Hannah-Mercedes Skenfield, mortgage expert at moneysupermarket.com says: "Undoubtedly the biggest winners from the fall in interest rates have been those consumers who have been sat on SVRs. Traditionally lenders' SVRs have usually been higher than the deal that was ending so consumers would have to remortgage as a result. Now we have a situation where many consumers are sitting on extremely low rates and have no incentive to move."

But Moneysupermarket.com says it has started to see SVRs starting to increase again, and rates for remortgaging starting to fall so for some consumers, now is the time to consider looking for an alternative deal. Rates can only go up and it might be wise to catch them before they rocket.

If you are unsure what to do, talk to a professional mortgage adviser. They will be able to assess your finances and search the market to see if there is a better alternative remortgage options for you. Remember – it's not all about the short-term, a good mortgage adviser will remind you that paying slightly more now may save you a fortune in the future.

SOURCE: Moneysupermarket.com, BoE, 04/03/10

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If you are self employed and run your own business you are probably working ten times as hard as you did before the recession to make sure your business gets through this tough economic spell.

So it would be a tragedy if something like your self cert mortgage got the better of your business. But if you miss payments on your mortgage it may be that your other assets – such as those in your business – that are at risk.

And it is not as though businesses have been all that robust in the first place over the last 12 months. According to Equifax there was an 18% increase in businesses going bust last year when compared to 2008, with 32,988 businesses failing in 2009 – that almost one UK failing business every 15 minutes.

Neil Munroe, external affairs director of Equifax says: "Clearly the UK economy is not out of the woods – when comparing 2009 to 2007 overall there is a 39.5% increase in failures. So the businesses that have survived so far must continue to be very careful about how they manage."

Part of managing your business is managing your self cert mortgage because if you default on your mortgage, you will risk repossession and bankruptcy. You could lose everything by not taking care of your own personal debts as well as taking care of the finances of your business.

So talk to a self cert mortgage adviser if you are struggling with your personal finances. They might be able to help you find a new loan, get hold of more credit or set up a new budget so as you put your mortgage debt first – for the sake of your home and your business.

SOURCE: Equifax, 10/02/10

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It was recently revealed that we are officially out of the longest recession since the Second World War – but does this good news actually mean anything to self employed borrowers?

All we hear of is the recession, like a cloud over all of our heads, but now it is over. The Office of National Statistics says the economy grew by 0.1% over the last three months of 2009.

So will everything go back to the way it was six quarters ago? No, of course it will not – the end of a recession doesn't mean the end of tough financial times for may people who are self employed. They still have bills, debts and financial stresses to handle every day.

Mark Bolsom, head of the UK trading desk at Travelex, says: "Although the data and survey evidence does tell us that the UK exited recession in its four quarter, the figures are utterly intangible to the everyday UK consumer and business."

This is because 'output' and 'growth' are things that do not pay the bills. Your clients will not offer you more work and you will not receive a bigger contract just because the UK economy is 'officially' out of a recession – for may self employed people it is going to feel the same for some time to come.

Bolsom adds: "For our business customers, credit conditions remain extremely tight and the prospect of higher taxes and public spending cuts are not reassuring. Small businesses still have to make redundancies and slash budgets as their recovery remains sluggish. Also, we think that the chances of a double dip recession cannot be ruled out. Unfortunately, we forecast a bumpy couple of years for UK consumers and businesses."

So ignore the headlines, get on with managing your own finances. Talk to a self employed expert about taking on new credit lines, new loans and rearranging your assets so as to make the most of your money while things are still tough.

SOURCE: ONS, Travelex, 26/01/10

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If you are a borrower who needs to self certify their income, leaving everything in the hands of a bank might be a big mistake – specialist borrowers need specialist financial advisers to give them a helping hand.

But banks are doing their upmost to snag customers by offering packages of financial products like current accounts, loans and mortgages.

David Black, banking specialist at Defaqto says: "We've already seen banks focussing their unsecured lending on their existing customers but now there is the beginning of a trend to target mortgage lending in the same way with a series of special mortgage offers available exclusively to current account customers.

"Banks see the current account as the main relationship builder with the customer and it also enables them to have a much better understanding of the financial capabilities of each customer. Banks are striving to become the one-stop shop for all the personal finance needs of their customers."

Banks try and lure account holders with limited edition or exclusive mortgages – but a mortgage with a current account might not be the right deal for you, even if it looks cheaper with a preferential standard variable rate, for example. If you need to self certify your income you need a specialist mortgage to do the job properly. You also need a specialist mortgage adviser who will help you find the right deal, not just a deal with a gimmick.

Black adds: "Just because the rate offered by the special deal is slightly below the standard rate available to non- current account customers, it does not necessarily mean that you cannot get a better deal elsewhere. People should shop around for the best deals as loyalty does not necessarily pay."

SOURCE: Defaqto, 05/01/10

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