A big question being asked today is, is it harder to borrow money now than it has been previously?

Let’s look at how hard it was previously to borrow money and how the landscape looks now if you're trying to apply for a loan.

Looking back at the early 2000s, it was quite easy to borrow money. Banks were very relaxed with their lending policy, in fact, you didn’t need a deposit to purchase a house. Then what happened? We had the global financial crisis. Since then banks have very much tightened up their lending policy making it harder for you to borrow money.

One of those methods was insisting that you had a minimum of a 5% deposit, in some cases, a 10% deposit. If you could show you had the income required for the loan you were applying for, then you were on your way to getting approval.

More recently, in 2018, we had banks being forced to look at your living expenses. As part of that, they were asking applicants to complete a budget and in many cases provide bank statements so they can see how your spending aligns with what your budget is.
The banks were then using that to determine your living expenses. Whereas, in these earlier years, they would just use a set figure based on the number of adults and children within your household.

That gives you a quick look at the last 18 to 19 years, how the lending landscape has changed. The best advice we can give you is to make sure that your spending and your budget matches up, particularly in the three months before you make an application.