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Private Mortgages

Obtaining a mortgage can sometimes be easier said than done. Traditional lenders like banks and credit unions require a strict set of criteria to approve a mortgage, and there are times this is not possible. Yet you don’t necessarily need to delay or give up on your dream of being approved for a mortgage.

Your circumstances may make it difficult to arrange a traditional mortgage; for example, if you are self-employed and can’t prove serviceability; if you are between homes and require fast approval for a bridging loan; if you have a problem with your credit history; if you are on a pension; if you are unemployed or between jobs; if you have an ATO debt; or if you are seeking capital for business purposes urgently. It is in these circumstances and others similar that you may find the solution in private mortgages.

What is a Private Mortgage?

A private mortgage is simply a mortgage provided whereby the loan funds are sourced from and provided by another person or a business as opposed to a traditional mortgage lender like a bank, credit union, or another mainstream finance provider. Where a bank or other mainstream mortgage lender may decline an application that does not meet its strict lending criteria, a private mortgage lender considers a broader set of criteria for loan approval. In most cases, where sufficient equity is held, the underlying asset is considered as security for loan approval rather than the relative credit risk or perceived character of the borrower.

Private mortgage providers seek to lend money for residential, commercial, or business-based property transactions. While banks take a tough stance during their assessment of an applicant’s worthiness for being extended credit for a mortgage, private mortgage lenders offer more understanding, realistic options without bias.

How Can Universal Finance Help with Private Mortgages?

Universal Finance is a South Australian-based finance company and we offer superior private mortgages with the lowest interest rates for private lending in Australia. We have been providing solutions and offering Australians an effective alternative to traditional mainstream lenders for the last twenty years, and we have direct access to more than one thousand private lenders throughout Australia. We deal directly with a large panel of Private Mortgage Funds across Australia and we provide valid alternatives to borrowing from banks and other mainstream mortgage providers. No matter what your circumstances, if you have a challenging or difficult mortgage loan situation, we can help.

Frequently asked questions

What’s is a private mortgage?

A private mortgage is one where the funds are provided by a person or business, instead of coming from a bank or traditional finance provider. Private mortgages can be sought for residential or commercial properties, and the main advantage of them is that they tend to have a more open criteria for acceptance than a bank. People who’ve found it difficult to obtain a mortgage in the past may find that applying for a private mortgage gets them the funding that they need to buy their dream property.

How do you qualify for a private mortgage loan?

The requirements for getting a private mortgage vary from lender to lender. In general, the process is different to qualifying for a mortgage through your bank, as private lenders won’t just look at your credit score, but also affordability, risk and more. Universal Finance have over 1,000 private lenders who could potentially finance your new property, so no matter what your situation, we may be able to help.

How do private mortgage loans work?

Private mortgage loans are similar to traditional mortgages in many ways. You apply, get approved, and then the money is paid out for the property. You then make the repayments as per your agreement. The main difference is that the money comes from a different fund; instead of being paid by a bank, it’s funded by an investor. This means there’s a lot more flexibility about who can borrow money and the amount that can be funded. It can be helpful for those who don’t qualify for a traditional mortgage, those who need bridging loans, or anyone who is in a situation where a bank wouldn’t be able to help.

What are the benefits of using private mortgage lenders?

The main benefit of a private lender is the flexibility. You don’t have to fit the same strict criteria that banks impose, so those who have been turned down by a bank may find it a useful option. It can also be good for those buying an unusual property, who can’t get a mortgage on it from a bank, or someone who is looking for something different. Private mortgages are great for those with a less than perfect credit history, or those who simply don’t want to use a traditional lender, and may even attract a lower interest rate than you’d get through a bank.

Is a private mortgage the best option for me?

Private mortgages can be a good option for lots of different people in all sorts of financial circumstances. You might be looking into private mortgages because you’ve been turned down by banks, or perhaps because a traditional mortgage doesn’t suit your needs, in which case, a private mortgage might be the best option. Universal Finance will be happy to discuss your needs to help you decide what’s right, and you could also seek independent financial advice if you’re unsure what kind of financial product is right for you.

Choose Universal Finance for your Private Mortgage

Contact us at Universal Finance today. Our friendly and supportive consultants have the expertise and experience to understand your situation quickly and work with you to develop a satisfactory solution. Look no further for low-interest private mortgages without compromise.