24 Hour Loans glossary of financial terms

Applicant Type

Applicant type is a general term that is used by the financial industry to define their customers by looking at their circumstances when they apply for a loan product. So, for example, if you are looking to take out a mortgage for the first time then you will be a first time buyer applicant type. If you are looking to change mortgage product but to stay with the same lender then you may be classified as an existing customer as your applicant type.

This term can cover all kinds of data about you that is relevant to the general lending process. So, for example, your employment status, credit history and financial situation may all used by lenders to define your actual applicant type. Classifying their customers in this way simply helps lenders assess their standing which could play a part in the kind of deals they will be eligible for or the levels of interest rates that they will be charged.