What you need to know about mortgage underwriting...

What is mortgage underwriting?

The process of assessing the risk of a borrower being able to make the proposed mortgage payments. Mortgage underwriting is carried out by the mortgage lender.

Where have you heard about mortgage underwriting?

If you’ve applied for a mortgage then your application would have been considered by an underwriter. They’ll look at the information you’ve provided and decide whether you qualify for the mortgage.

When looking at your mortgage application, an underwriter will consider risk across three categories:

• Capacity– are you able to repay the mortgage? They’ll take into account your income, savings, debt and family circumstances (e.g. if you have dependent children)
• Collateral– the type and value of the property that the mortgage is for. Normally your lender will carry out a home valuation survey to evidence the value of the house
• Credit or character– how well you’ve handled and paid off debts in the past.

An underwriter will use the information on your application form and other evidence, such as bank statements and a credit check to assess these risks and decide whether or not to loan you the money.

Find out more about mortgage underwriting...

For specific information on mortgage underwriting in the United States, see our definition of this term .