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Underwriting;

Over the last few years and with the changes made as part of the Mortgage Market Review underwriting of mortgages has become far less straightforward.

The days of just looking at someone’s income and multiplying it by three to get to the mortgage loan size are a thing of the past.

At the Family Building Society we manually assess each new mortgage application without the use of credit scoring which means one of our experienced underwriters will look at the circumstances of the application to see if we can help. This means we can try to be more flexible than some of the larger lenders.

We lend to both first time buyers via our Family Mortgage or to older applicants and in the later situation this will mean looking at the applicant’s income, both now, and if the mortgage takes them beyond retirement, which could include looking at what pension arrangements they have. This is important as changes to income impacts whether the mortgage will remain affordable, especially if interest rates rise. We also look at factors such as the distance between the property and the applicants work as someone earning a relatively modest income that has a 200 mile commute may find the costs prohibitive.  We want to see that the mortgage remains affordable so factors such as any other debts, the number of children, and everyday living expenses have to be considered. We also review the applicant’s credit profile to see that any existing loans or mortgages are well conducted and if the mortgage is arranged on an interest only basis what the plan is to repay the loan.

Finally the mortgage valuation provides some basic details, number of room s, floor area etc  along with an idea of the value which limits what we can lend.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
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