In addition to the deposit, there are some other criteria that you need to meet in order to be eligible for 60% LTV loans.
Income
You have to ask yourself, do I earn enough to borrow such money? Not all lenders put the same criteria for accepting an application. However, it’s common for lenders to take into account your current salary and any other sources of income that you have (investments or other forms of profit) into account.
Lenders usually prefer applicants with steady incomes and an ideal debt-to-income ratio. In most cases, you can borrow around 4 to 4.5 times your annual salary. That’s why having a stable income is critical for a higher chance of approval.
Job Stability
Lenders also consider your work status. Whether you’reself-employedor new to a job, lenders want to know more about your job to ensure you have a stable position and salary to cover your mortgage.
Your Spendings
Having enough money in the bank or a stable job isn’t enough on its own to make you eligible for a 60% LTV mortgage. That’s why lenders will look at your spending habits to ensure you can cover monthly payments. They’ll need to check your outgoings including use of credit cards and how much you spend on bills, groceries, entertainment, etc.
Credit Score
Lenders will also check yourcredit scoreto see your history of managing debts. With agood credit score, it’s far more likely that you’ll qualify for a 60%-LTV mortgage. That’s because your good credit history will give lenders more confidence that you’ll be able to make the regular mortgage repayments required on the loan.
