Three ways to make yourself more attractive to a lender

_JWM2745

Our Mortgage Adviser Tom Graham has put together some top tips to help you understand the process behind a lender's decision on what you can or can't afford to borrow when buying a house or remortgaging your home.

Lots of clients ask the same questions:

  • How much can I borrow?
  • How much can I have to buy a house?
  • How much deposit do I need?

They know how much they earn, some have saved up significant deposits, but many don't know about the other factors lenders consider when making a decision on whether or not you can have the money you need to buy a house.

A lot of the issues with affordability are actually around the amount a client earns versus expenditure; rather than just earnings plus deposit.

Here are three ways to make yourself more attractive to a lender:

  • Low debt to income ratio: DO NOT run up credit cards to their credit limits. This affects your affordability and credit scoring with the lenders.
  • Good banking conduct: DO NOT sit in your overdraft. This will be viewed as a credit commitment because an overdraft is not your money.
  • Increased deposit: DO NOT settle with the minimum deposit. Lenders can be more generous with their affordability when the loan to values are lower.

For a better understanding of how to maximise your borrowing potential speak to an adviser you trust and get a full financial review.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Our adviser Hannah was worried she hadn't provided...
IF IT SOUNDS TOO GOOD TO BE TRUE IT PROBABLY IS!
 

Comments

No comments made yet. Be the first to submit a comment
Guest
Tuesday, 28 September 2021

By accepting you will be accessing a service provided by a third-party external to https://www.stansherlock.com/