Boost Your Borrowing Power And Be An Attractive Borrower

Do you dream of buying your own house? Do you wish to drive your own car? A lender on various criteria can curtail your dream of buying your own home.

If you are planning to borrow funds, you can read on the following tips to increase your chances of getting a bigger loan:

The deciding factor for banks

A lender considers many factors while they assess the amount of cash to lend. The lenders consider factors such as repayment capacity, credit history, existing debts, affordability and income.

To borrow a good amount of loan, you need to reduce anything that is assessed as a red flag by the lenders.

These days’ loans for young people are available in the market and to portray yourself as an attractive buyer you need to work on your financial picture.

Ways to Boost your borrowing power

Debt payment

While applying for a loan, you should have a clean financial picture to present in front of lenders. While assessing your loan application lenders look at how much debt you have on you.

Generally, if you have a high amount of debt on you, there are very few chances of getting a loan from any lender. So it is advisable to pay off your existing debts from the savings you have to borrow a new loan.

Paying off your existing debts can be cost-effective and make an attractive borrower for the lenders. A key tip to remember is keeping aside some money as savings and not exhausting it all to get a new loan.

Accounts closure

It is good to have lots of credit cards, but you will not be in the lenders’ good books if you have lots of credit cards or large overdraft facilities.

Before lending, most of the lenders check your access to your credit. If you have a credit facility that you are not planning to avail, it is better to get that account closed or get the limit reduced to make yourself lender friendly.

Improve your credit rating

It is always favourable to have a good credit rating. The lenders find good credit rating as advantageous for them.

There are many ways to improve your credit scores, such as paying your utility bills on time, be on the electoral roll, having a landline telephone and many other factors. 

Organize your accounts

Your income records play a very important role if you are planning to apply for a mortgage. The lenders check your income records for at least past two years along with your accounts proof.

It is good if you make more money as the more income you have, the greater amount you can borrow. It is good to understate your income for the tax purpose but if applying for a mortgage always shows your real income.

Get a pay rise

Another factor considered by the lenders is your income level. The more you earn, the better it is.

If you wish to apply for a loan, you can ask your boss to give you a rise to increasing your chances of getting the mortgage faster.

Survey the market

It is always good to have a survey of the lenders market to know about different lenders available. It is advisable to approach a broker as they are the best people to advice on different lenders.

Brokers have access to the whole of the market and are aware of every lender. Various websites present you with different lenders’ information as per your borrowing power and the credit score.

Minimize spending

Lenders always consider your affordability to calculate your repayment capacity. They analyze your money spending pattern to decide on lending.

Your spending pattern includes your lifestyle choices such as vacations, outings, bills, childcare costs etc.  To borrow a good amount of loan, you can budget your expenses to get a clear picture of your expenses and the areas you can cut back to manage your finances.

Loan term extension

Another way of boosting your borrowing power is to lower your monthly payments for opting a longer term for your mortgage.

Usually, the mortgage term is 25 years, but if you extend it, the lenders can extend it up to 35 years. This will make your payments affordable.

A warning for the extended term is that the longer the mortgage term, the higher the interest rate will be. 


One of the best ways to increase your boosting power is to get a guarantor. You can ask your parents or guardian to guarantee your mortgage.

This will include your parent’s financial position, too, under surveillance by the lenders. The lenders will check your parent’s financials too, whether they are defaulters or not. 

Joint Mortgage

If you join hands with a partner to mortgage, you can increase your borrowing power as both your incomes or salaries will be taken into consideration. If you are single, you can apply for a mortgage jointly with your parents or your friend.

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