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Small business owners are still finding it tough to get hold of a mortgage as banks continue to be risk adverse – so a professional mortgage adviser is more important than ever right now.

The Forum of Private Business asked its members how they were handling their finances. According to the results, the cost of finance is a major issue for 63% of respondents. Almost one in five said it has become a ‘very serious’ concern.

FPB says: “Recent data shows that, despite the rate of new applications slowing, the overall availability of lending is beginning to improve slowly. However, it is becoming clear that steep interest rates, a range of charges and demands for additional security are combining to create a significant cost barrier preventing viable yet struggling firms from securing the funding they need.”

“The tragedy is that, as a result of this, often these small firms are not able to satisfy orders and exploit other opportunities that exist. Many then have no alternative but to close their doors.”

If you have been given a short shrift by your bank, it's time to get the help of a professional. Someone who has been working with self certified and self employed mortgages for years, like a professional mortgage adviser, will be able to talk the language of the banks and try and help them and you come to some sort of arrangement.

The best mortgage advisers are the ones who understand the industry, have the lender contacts and can try and work round the current lending limitations. It might not be successful in every case, but your best hope of securing finance right now is with the help of a professional adviser.

SOURCE: FPB, 11/09/09

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