What Lenders Will Ask For

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Every lender will want to understand who is borrowing, what the security is, why the money is needed and how it will be repaid. Having the following ready at the start is the single most effective way to speed up your loan.

About you and your company

The lender will carry out identity and anti-money laundering checks on every borrower and guarantor, and on every director and shareholder holding 25% or more of a corporate borrower. For each of them, it will need:

• a passport or photocard driving licence;
• proof of address dated within the last three months; and
• details of their assets and liabilities.

Where the borrower is a company or LLP, the lender will also need its company number and a chart showing its ownership structure, through to the individuals who ultimately own or control it.

Your credit history

Please tell us at the outset about any missed payments, county court judgments, defaults, IVAs, bankruptcies or arrears, past or present. Many lenders will consider adverse credit, but almost none will proceed if it is discovered late or was not disclosed. Telling us early allows us to approach the right lenders from the start.

About the property

The lender will need the property’s address and tenure, its title number, and details of any existing mortgage or charge, including a current redemption statement. If you are buying, it will need the purchase price and the memorandum of sale or auction legal pack. If the property is let, please see our guides for let property.

What the loan is for

The lender will want a clear explanation of the purpose of the loan. For purchases, it will want evidence of where your deposit is coming from. For refurbishment, it will need a schedule of works with costs, details of who will carry out the works, and any planning permission needed.

If the funds are for business purposes, the lender will need a clear understanding of how you intend to use them. Funds cannot be used to repay personal debt. All monies raised must be paid to your company, after which you are responsible for how they are used.

How the loan will be repaid

The lender will need evidence of your exit. For a sale, this may be an agent’s appraisal or comparable sales. For a refinance, it may be a mortgage agreement in principle or confirmation from a mortgage broker that the refinance is achievable.

Your experience

For refurbishment, conversion or development, lenders will usually ask for a summary of projects you have completed before. Less experienced borrowers can still be funded, but the case may need structuring differently.

The information you give the lender must be accurate and complete. If anything changes during the process, please tell us straight away.