Whether you are looking for an investment property, buying your first home or wanting to upgrade the family home it is important to ensure that, when it comes to purchase time, you can actually borrow the funding you require.
There are several ways that a prospective borrower can boost their borrowing power, enabling them to borrow more or at a better deal.
- Credit Cards – Sort out your credit cards, pay them out and get rid of them. Lenders take into consideration the number of cards you have and the credit limits on them (even if you have a zero balance). To boost your borrowing capacity you are best off without them.
- Protect Your Credit File – Every time you make apply for finance it is recorded on your credit file. Some lenders will decline a loan if a borrower has made application too often in the previous 12 months.
- Collect The Rent – If you own an investment property make sure you are obtaining maximum rent. Under charging tenants lowers your cash-flow.
- Keep Your Job and Your Residence – Lenders like to see stability. Remain in your existing employment for at least 6-12 months and maintain your current address for a period of time. Lenders don’t like people that switch their lifestyle frequently.