Within the secured loan market, a no proof of income secured loan can be called various things, Non status, Self certify or self declaration. The principle behind a no proof of income secured Loan is simply that you state your earnings, usually on a self declaration form, and you provide no proof of income,eg Payslips, Accounts or Accountants references.
In general, you may pay a higher rate of interest than a status case (employed with Payslips) and usually it is a percentage increase on the loading above base rate. This is usually due to the fact that you are a higher risk than someone with provable income. Even if your credit history is good and you have made all your contractual payments, you are generally considered a higher risk. All finance is offered on what is termed a "rate for risk" basis. This means generally that several factors are taken into account when assessing rates for loans. No proof of income is one of those factors.
In the current climate, no proof of income cases have become more difficult to place, with many lenders restricting loan to values and loan amounts, this all being due to the credit crunch and American sub prime market problems. In fact, some lenders, consider No proof of income secured loans as sub prime. This means that with all the current turmoil, that self cert cases have been included within the criteria changes.
However, as with any market, the self employed/no proof of income market will recover since there is a demand, and whenever there is demand their will be supply, it is only a matter of time before additional lenders enter the market and current lenders relax their criteria.
Your cause can be greatly helped by choosing a good packaging company, who will have the criteria for all their relevant lenders, and will save you alot of time and credit searches, to help you through this and get you the no proof of income secured loan your looking for.
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