Lenders look at your application and will assess it based on your ability to repay the debt, your track record of paying off debts and how much deposit you are able to put down. The lower your deposit, the more risk you present to the lender. By saving a larger deposit, your chances of being approved for a loan might increase.

You can be sure that most lenders will take a close look at your history of paying off debts, also known as your credit score. If you have any outstanding loans that you have a record of late payments, you should look to get back on track before applying for more credit. Obtain a copy of your credit report, review the report and look to see if there are any errors, if so it is imperative that you contact the credit agency and sort this out – as the result of this could see your chances of obtaining a loan being hampered.

Short-term debt with high interest rates hurt your borrowing capacity and will make it harder to get finance. Be sure to pay any credit card debt in full each month and try to avoid taking out unnecessary loans.

Lenders like to see that you can manage your money. They’ll want to see at least three months' worth of bank statements to make sure you have some genuine savings and that you are going to be able to make your repayments if you get approved. You will also want to have enough in your accounts to have some money put aside for unforeseen circumstances arising or extra expenses you hadn’t planned for.

Having a track record of steady employment or business income is crucial, as it gives your lender confidence that you have funds coming in each month to repay your loan. There are lenders that specialise in new businesses and self employed clients just as there are traditional lenders that like having a lower risk and sticking with payg clientele. Choosing the right lender that suits your employment situation is critical.