Three ways to make yourself more attractive to a lender

Our Senior 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.