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Meet Matt and Megan, a married couple from the Gold Coast. Although their loan application didn’t meet traditional lending criteria, national sales manager Lee Prior discusses how Pepper Money provided them with a second opinion.
Matt and Megan are a married couple with two children, both under eight years of age.
Thanks to a recent inheritance, they are debt free, and own their newly built family home outright. The home is valued at $620,000. They want to use the equity in their home to withdraw $70,000 to furnish the property.
Five years ago, Matt had a business that failed and he has since been discharged from bankruptcy as of January 31 this year.
Matt has worked at the local supermarket on a permanent part-time basis for the past three years. The family also receive Family Tax Benefits Part A and B plus a Centrelink parenting benefit.
They are looking for a lender who can assist them, as their Parenting Allowances would need to be used to service the mortgage.
The solution
Based on the facts above, the broker suggested Pepper Money to Matt and Megan.
After reviewing their situation, Pepper Money was able to assist the family with a Near Prime Full Doc product. The benefit of this product is that it allows for discharged bankruptcy (> 1 day accepted) and FTB Payments Part A and B plus Parenting Allowances can be accepted at a rate of 100% as income for servicing.
Pepper Money’s cash-out policy allows for borrowing up to 85 per cent LVR for acceptable purposes including renovations, business use and payment of ATO debts. Furnishing the property would be considered an acceptable purpose.
For income verification documents the couple would need to supply their latest Centrelink statement advising of benefits payable to them, and Matt’s last two pay slips along with one of the following:
• Letter of employment
• Tax assessment notice
• Latest group certificate
• Three months’ bank statements showing wages receipts
Whatever the circumstances, if an application doesn’t meet traditional lending criteria, Pepper Money can provide a second opinion.
Pepper Money likes to look at a wide range of factors when assessing a home loan application. They do not simply tick boxes as many other lenders do, instead Pepper Money will get a more detailed and informed understanding before it starts making decisions.
