Which Mortgage Lender to Choose

Posted by David
February 22, 2007
The profile and needs of a borrower vary considerably but virtually all will fit into one of the following four categories. It is therefore imperative at the outset of any mortgage application care is taken to ensure the Mortgage Lender will accept this category of lending.

CATEGORY ONE - PRIME WITH VERIFIED INCOME
The Mortgage Lender definition of Prime is a borrower with a clean credit profile. This would normally be interpreted as servicing all financial commitments without default.Verified income would normally be interpreted as evidence of taxable income. Examples would normally be pay slips, P60, accounts etc.

CATEGORY TWO - PRIME WITH SELF CERTIFIED INCOME
The Mortgage Lender definition of Prime is a borrower with a clean credit profile. This would normally be interpreted as servicing all financial commitments without default. Self Certified income would normally be interpreted as income declared by the borrower where further verification is not required.

CATEGORY THREE - SUB PRIME WITH VERIFIED INCOME
The Mortgage Lender definition of sub prime is a borrower without a clean credit profile. This would normally be interpreted as various levels of default in servicing financial commitments.Verified income would normally be interpreted as evidence of taxable income. Examples would normally be pay slips, P60, accounts etc.

CATEGORY FOUR - SUB PRIME WITH SELF CERTIFIED INCOME
The Mortgage Lender definition of sub prime is a borrower without a clean credit profile. This would normally be interpreted as various levels of default in servicing financial commitments. Self Certified income would normally be interpreted as income declared by the borrower where further verification is not required.

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Author Biography
• Nigel Uglow is Lending Director of Flagstone Finance Ltd
• With over 25 years experience in the Mortgage & Finance Industry
• Directly Authorised by Financial Services Authority

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