Sound Odd? It does to me! Usually Christmas is the season of excess! But for all my clients looking to borrow money in early 2019, that is my wish for you. Why? Because if you do want to borrow money, Christmas spending that is too MERRY will really take the cheer out of your efforts to borrow funds early in 2019.

Let me explain…

As you will no doubt have heard, banks lending criteria has continued to tighten through 2018. It is estimated that most borrowers can now only borrow between 70-80% of the amount they could borrow 2 years ago.

One of the ways lenders have tightened up is by paying closer attention to borrowers actual living expenses rather than relying on modeled living expense figures.

Many lenders now even require borrowers to provide 3 months statements for transaction accounts so that they can verify spending against declared living expenses.

So right about now you can see where I am headed…

Borrowers that spend too much over Christmas may find their borrowing capacity diminish as lenders assess that the borrowers living expenses are higher than both the figures declared AND the usual spending pattern of the client.

So spending in December will impact you borrowing capacity through till the end of March. Just keep that in mind if you are looking to borrow funds in early 2019.  Sorry to be a kill joy!

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