Borrowing Power Calculator

When assessing your financial situation, lenders will look at a number of factors to determine how much you can borrow. These factors vary from lender to lender, but most of them look at your income, debts, living expenses and credit history.

Because of this, it’s important you try to reduce your debt as best as possible before applying for a loan, and don’t take on any additional debt.

For more information, head to our blog to see how a lender will assess your application.

Having a large deposit is looked positively upon by lenders. However, having a large deposit doesn’t automatically mean you can borrow more.

Your deposit is only one aspect of what lenders look at when assessing your loan application.

A larger deposit does give lenders confidence that you can save your money and budget for your repayments, but it isn’t the only thing that’s considered.

We’d all love to be able to borrow an unlimited amount of money, but unfortunately, this isn’t the case. Luckily, there are a few easy things you can do to increase your borrowing capacity.

First, look at canceling subscriptions and services you don’t use or need. How many of us still have an active gym membership and aren’t using it?!

Cut down on other areas too such as food delivery services. Even if you don’t cut them out completely, look to reduce costs such as opting to pick up your meal and save on delivery fees rather than getting it delivered.

The second way to increase your borrowing capacity is to pay off any debt you have. This includes credit card debt and personal loans.

Once you’ve done this, look at some ways you can increase your savings, such as picking up extra shifts or asking for a pay rise.

Chat to the friendly team at Inovayt to see how you can increase your borrowing power.