Frequently asked questions

That depends on your assessed income, your existing obligations, your age and the value the lender places on the property. Lenders also fund only a proportion of the property value and expect you to contribute the rest. We can talk through a realistic range once we understand your position.

Some lenders will assess your income and give an in-principle indication before a property is identified. It is an indication of borrowing capacity, not a sanction, and it is normally subject to the property later clearing legal and technical checks.

Not usually. Multiple applications in a short window can show up on your credit report and some lenders read that unfavourably. It is generally better to apply where your profile genuinely fits.

Broadly, the less tenure you have left, the weaker the case. Most of the interest on a loan is paid in the early years, so a transfer late in the term saves comparatively little while the switching costs stay much the same. The remaining balance and the difference in terms both matter.

Expect handling by the outgoing lender, fresh processing charges from the incoming one, valuation and legal verification, and stamp duty or registration on new documents. The exact amounts depend on the lenders and your state, so they should be confirmed in writing before you proceed.

Many lenders will consider a top-up alongside a transfer, subject to your income, the property value and their own limits. It is assessed as part of the same application rather than granted automatically.

Lenders advance a proportion of their own assessed value of the property, not the price you believe it would sell for. The proportion varies by lender and by property type, and your income still has to support the repayment.

Many lenders accept residential, commercial and in some cases industrial property, but their appetite differs considerably by property type, age, location and title. It needs checking against specific lenders rather than assumed.

Yes. Lenders generally ask what the funds are for and some purposes are excluded, particularly speculative ones. The stated purpose should be accurate.

In tranches tied to construction milestones such as foundation, slab and finishing. The lender normally inspects progress before each release. The exact stages are set out in the sanction terms.

The sanctioned amount is based on the estimate submitted. An overrun is generally yours to fund, and any enhancement to the loan would be a fresh assessment rather than an automatic top-up. It is worth building some margin into the original estimate.

Many lenders charge interest only on the amount disbursed so far until the loan is fully drawn, with full instalments starting after that. Arrangements vary, so confirm the structure with the specific lender.

Lenders generally fund a smaller proportion of the price, offer shorter terms and apply stricter conditions on where the plot may be. The tax treatment also differs from a home loan, which is worth discussing with a tax adviser.

Most lenders do not fund agricultural land under a plot loan. These products are generally confined to residential plots within approved layouts. Where land use has been formally converted, the position may differ by lender.

Some lenders attach that condition to a plot loan and it can affect the terms. Whether it applies depends on the lender and the product, so it should be confirmed before signing.

Typically structural repair, extension of built-up area, and fixed improvements such as plumbing, electrical work, flooring, roofing and waterproofing. Movable furniture, appliances and purely decorative items are commonly excluded, though the boundary varies by lender.

They can achieve a similar result but they are assessed differently. A renovation loan is assessed against the proposed work; a top-up is additional borrowing on an existing loan. Which suits you better depends on your current loan and the size of the project.

Internal repair and replacement usually does not require it. Extending or altering built-up area often does, and lenders generally want to see that permission before funding that portion.

It depends on the property's current value, how much of the original loan is outstanding, your income and the lender's own limits on total borrowing against a property. There is no fixed figure and the lender decides.

Not always. Several lenders restrict end use and ask you to declare it, and some exclude speculative purposes entirely. It is worth checking before applying rather than after.

No. A top-up is additional borrowing on a loan you already hold with that lender. A loan against property is a separate facility, and can be taken against a property with no existing loan on it.

Because nothing is pledged as security. If repayment stops, the lender has no asset to recover against, and that additional risk is reflected in the pricing. The lender sets the actual rate.

It usually does the opposite. Each application is recorded on your credit report, and several enquiries in a short period is a signal lenders read negatively.

It is harder, because the lender has nothing to assess. Some lenders will consider it with a strong, verifiable income; others will decline. It varies by lender and profile.

Generally more than for a home loan. The exact proportion is set by the lender and depends on the property, its location and your profile, so it is worth confirming before you commit to a purchase.

The treatment is different, and it depends on how the property is used and on your own tax position. This is a question for a qualified tax adviser rather than for us.

Sometimes, and with more caution than a completed unit. Lender appetite varies considerably with the developer and the project, and some will not consider it at all.