How can you boost your borrowing power and be an attractive borrower?

Ailsa Adam February 8, 2022

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.

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

The deciding factor for banks

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

These days’ many loans are available in the market, and to portray yourself as an attractive buyer, you need to work on your financial picture. You can borrow from taking loans payday 12 month and fund all your day to day needs.

Ways to Boost your borrowing power

1. 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, there are very few chances of you getting a loan from any lender. So it is advisable to pay off your existing debts from the savings you have in order to borrow a new loan.

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

2. Accounts closure

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

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 of, it is better to get that account closed or get the limit reduced to make yourself lender friendly.

3. Improve your credit rating

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

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

4. 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 the 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. Though it is good to understate your income for tax purposes, always show your real income if applying for a mortgage.

5. 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.

6. 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 the access to whole of the market and are aware of every lender. There are various websites that present you with the information of different lenders as per your borrowing power and the credit score.

7. 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 costs and the areas where you can cut back to manage your finances.

8. Loan term extension

Another way of boosting your borrowing power is to lower your monthly payments by 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. For example, if you borrow online 5k loan bad credit, you have to decide on the loan term and set a mutually beneficial term.

9. Guarantor

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 also check your parent’s financials, whether they are defaulters or not. 

10. Joint Mortgage

If you join hands with a partner to mortgage, you can increase your borrowing power as both your incomes and salaries will be taken into consideration.

If you are single, you can jointly apply for a mortgage with your parents or friend.


It is important to be an aware borrower. For this, you can connect with different lenders. Once you are aware of all the terms and conditions, you can negotiate accordingly. Also, you can focus on increasing your borrowing power.

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