Why you still might not be able to borrow - even if you have a lot of equity.
It can happen that you can have a property with a lot of equity, or you have a very large deposit, but we tell you that your income isn’t sufficient to borrow the money you’d like. I get that this is frustrating but we need to separate the two factors.
There are three key characteristics of borrowing that the banks investigate:
Character (who are you, do you have good repayment history, do you have stable work etc, and we will disregard this factor for now),
Collateral (equity or deposit that you have)
and the third is Capacity.
Capacity is the test of your ability to afford the ongoing repayments o