What Does Subject to Status Mean?

Subject to status will mean that you will have to adhere to certain requirements for your loan to be approved on the basis of:

  • income
  • credit score
  • affordability
  • age

The exact subject to status criteria depends on the lender you apply with. However, it can often mean you will need to have a minimum credit score or income in order to be approved for any kind of short term loan or a mortgage.

When applying for a small loan, big loan or mortgage, you may come across another similar-sounding term: a loan in principle. Some lenders will agree to an offer for a loan in principle, but this will be only on the basis of giving confirmation of eligibility criteria. That will usually mean a lender will need you to provide documents: such as payslips, bank statements, P60s, for example.

Subject to status for loans

When it comes to subject to status regarding loans, all lenders on the market have their own company credit scorecard. These all indicate their own eligibility criteria terms.

Unsure as to the kind of details that are typically kept on a credit scorecard? In most cases, it will combine data analysis, customer data, predictive modelling as well as behaviour analysis. The credit score may also take into consideration things such as the lender’s predictions for the wider economy.

In regards to each section of the eligibility criteria, you will find that it is weighted differently according to the individual lender.

Nevertheless, many direct lenders do stick to some general information used to determine eligibility, which includes:

  • Credit history: in many cases, a lender will not accept you for a loan if you do not meet specific eligibility criteria regarding your credit score (such as if it is not high enough). If you are unsure as to what the best score is: the best possible credit rating a person can get (using the Experian scale) is 999 and the worst is 0. See how to improve your credit score for more information.
  • Your income: often lenders will cross-reference the income level you have stated from your credit file in order to avoid any inflated claims and to mitigate potential risks in lending to you. This is because it can be easy to exaggerate the level of income you have, in order to maximise your chances of being accepted, Consequently, lenders often make additional checks to ensure you meet eligibility criteria.
  • Your age: this will be one of the most important eligibility criteria as you need to be at least 18 years of age.

Subject to status for mortgages

When a mortgage is subject to status, will need to provide confirmation of the information you gave the lender, as well as provide detailed documentation which clearly states a valuation of the property. The valuation must be carried out to ensure that it meets the criteria upon which the lender is prepared to lend the money to you.

In terms of subject to status regarding mortgages, in the majority of cases, the main criteria are the Loan to Value (also known as LTV).

For mortgage offers made subject to status, they are open for up to a period of six months. This then allows potential buyers to have time to look at the property market and find the right deal.

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