Loan Requirements Guide
How eligible am I for a loan?

Here's the big trade secret: Your success in getting a loan simply depends on whether you meet specific criteria.

When you apply for a loan, all the lender wants to know is how you answer the following statements.

If you say yes to all of them you're the "model borrower". You'll be able to get a loan at the best interest rate going.

However the more statements you answer "no" to, the more expensive the loan will be.

The Model Borrower:

    Is a Home Owner

    (No? See How this affects you)

    Is up to date with their Mortgage Payments

    (No? See How this affects you)

    Has lived in their current home for more than 12 months.

    (No? See How this affects you)

    Is in full time employment

    (No? See How this affects you)

    Has no County Court Judgements and "defaults" registered against them.

    (No? See How this affects you)

    Their home is worth £10,000 more than their mortgage.

    (For example they owe ?90,000 on their mortgage but their home is worth ?100,000 plus)

    (No? See How this affects you)

If you match the "model borrower" criteria, congratulations. You will be eligible for the best loan rate going. Shop around for the best deal and don't let anyone con you into accepting a higher interest rate than necessary.

If not, then exactly how you don't will affect your eligibility for a loan and how much it will cost you.

Not a Home Owner?

Not up to date with your Mortgage Payments?

Not in Full Time Employment?

Bad credit history?

Not lived in your current home for more than 12 months

Home isn't worth £10,000 more than your mortgage?

Not a Home Owner?

The less you match the "model borrower" the more a loan will cost you.

A home owner is eligible for a "secured loan" ie secured against the property. if the borrower defaults the lender has a claim on the property.

If you don't own property then you can take out an unsecured loan. These are more expensive and take much longer to arrange.

There is an argument that there's no such thing as an unsecured loan in that if you default, when push comes to shove, what possessions you have could still be seized by the lender to pay what you owe. However truly unsecured loans - where thios can't happen - are available. Just make sure that if you are paying through the nose for one that it really is an unsecured loan.

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Not up to date with your Mortgage Payments?

The less you match the "model borrower" the more a loan will cost you.

If you are behind on your mortgage payments it may still be possible to get a loan. It'll be a "specialist plan"and cost you more than if you have a "clean" credit history. Your best bet is to talk to a loan broker and see what's possible.

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Not in Full Time Employment?

The less you match the "model borrower" the more a loan will cost you.

For example you may be self employed rather than "In full time employment". Many lenders will use this to charge you a higher rate than someone who is employed. (Note some the finance brokers - like the ones you can apply to from here - have access to lenders who don't discriminate against the self employed in this way provided certain other criteria are met eg you can show 3 years accounts etc).

Your best bet is to talk to a loan broker and see what's possible.

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Bad credit history?

The less you match the "model borrower" the more a loan will cost you.

If you have a bad credit history there are numerous "adverse credit" loans available, particularly if you own your home. They'll just cost you more than if you have a "clean" credit history.

Your best bet is to talk to a loan broker and see what's possible. Shop around as the deals on offer can vary greatly. Don't just grab the first offer. There's a whole industry based on the misplaced gratitude of people with bad credit histories that anyone will lend to them at all and will accept more expensive deals than necessary..

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The less you match the "model borrower" the more a loan will cost you.

In this event it should be possible to arrange a loan but it'll be a "specialist plan" and be at a higher interest rate ie cost more.

Your best bet is to talk to a loan broker and see what's possible.

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