Lenders will generally assess an application against five qualities when you apply for a loan:
1. Your ability to repay the loan – The lender will look at your employment history and salary to evaluate whether you have enough cash coming in reliably to repay the loan.
2. How much cash you have up front – Assessing your ability to put down a lump sum, typically 20% of the home value. The percentages vary and some lenders accept a 5% deposit.
3. The property value – The lender will request an independent valuation of the property being purchased to determine whether to accept the loan.
4. Your financial history – Based on your credit report and bank statements, the lender assesses your character as a borrower.
5. Market conditions – The lender will examine the economic circumstances in the market such as interest rates and the post code of the property.
Reach out if you would like us to run any scenarios and complete a pre-assessment.