AMS


Advanced Mortgage Services Ltd is an appointed representative of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Advanced Mortgage Services is registered in England. Company registration number 4751565.

Cherry Tree House, 20 Inverleigh Road, Bournemouth, Dorset, BH6 5HA.

Advanced Mortgage Services Ltd website is only for the use by UK residents & is subject to the UK regulatory regime.


David Hindmarch

Mortgage & Insurance consultant

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Lending Criteria


Mortgage Home

What is a Mortgage?

Types of Mortgages

Re-Mortgage

Buy To Let

First Time Buyer



One of the biggest changes to lending since the financial crisis in 2008 has been in lending criteria. Banks have become very risk averse not only to protect them from bad debt, but also if the bank is viewed as low risk their borrow cost will be lower.


Regulators are also requiring much more stringent checks on borrowing criteria from the banks with affordability and knowing their customers being a priority. The combination of these has led to some significant changes in lending criteria.


Affordability


Affordability checks require proof of income by way of Pay-slips, P60’s, Bank statements and Budget planners. For the self-employed they will require Accounts, HMRC Sa302’s and business bank statements.

There are now no self-certification mortgages available and all lenders will request proof of income.

Most banks have quite complex affordability calculations and are likely to get more complex in the future. The amount you will be able to borrow will be affected by criteria such as your income, outgoings, age, dependants and term of the mortgage.


With access to the lenders calculators I am able to establish very accurately how much each lender will lend based on your specific criteria.


Credit history


Banks are also much less willing to lend to anyone who has any poor credit history which could include late credit card payments, late or missed loan payments and late or missed mortgage payments. Also if you have made numerous credit applications this can also adversely affect your credit rating. If you are unsure of your credit rating then you can obtain a report from a credit rating company such as Equifax or Experian.


LTV


One factor which could affect both your ability to borrow and the interest rate you are charged is the amount of equity you have in the property. This is known as the loan to value (LTV).

Mortgage products are often segmented by LTV levels at 60%, 70%, 75%, 85% and 90% with the lower LTV’s offering the lowest interest rates.


What Will It Cost Me?

Lending Criteria Advice Adviser Broker in Bournemouth, Christchurch, Poole, Highcliffe, New Milton, Lymington, Ringwood, Ferndown, Dorset and Hampshire.


Your home is at risk of repossession if you do not keep up repayments on a mortgage or any other loans secured on it and you should think carefully before securing any debts on your home


In regard to residential mortgages we normally charge a fee of 0.5% of the loan. This fee will be reduced by any commission received from the lender typically 0.35%. Fees would become payable on completion of the mortgage.

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