Since the credit crisis, cheap loans have become slightly harder to find. Rising default rates have meant that lenders have little alternative but to tighten up their eligibility criteria. The best loan deals are offered to applicants who most closely match the desired credit profile specified by the bank.
Work and employment
The best rate loans are only available to applicants who are in permanent work. If you are working for an agency or are still in your probationary period, your application is unlikely to be accepted. This is because most agreements are for up to five years. So, financial institutions are looking for customers who are best placed to maintain the repayment schedule for the full duration. Terms of repayment
Your application is more likely to be accepted if you can easily afford to make the repayments. Lenders will ask you to produce a budget and will request three months of bank statements to verify the accuracy of the information you have provided. Customers who are not financially stretched are far less likely to default on the terms of the credit agreement.
You will need to be a U.K. citizen who is at least 18 years old. Rates will be affected by the age of the applicant because younger people are more statistically likely to default. It is essential that you are registered to vote because this is how lenders verify that you live at the address specified on your application form. Reliable payers
Financial institutions are looking for customers who always settle their debts punctually. Your cheap home loan application will be subject to credit scoring, and any past defaults will count against you. Even if your application isn't rejected, the rate of interest you'll pay will be based on personal pricing. This could mean that you pay more than the advertised rate. Improve credit
The most effective way to achieve an excellent credit score is paying your bills on time, but there are other things that you can do to enhance your creditworthiness. In order to get the lowest loan rate, request a copy of your credit report from Experian, Equifax and Callcredit and check that the information which is held about you is 100% accurate. You can order a copy for just £2 each.