Mortgage Lending Criteria vary from lender to lender and they change fairly regularly.
Set by the mortgage lender’s underwriters, the criteria are decided upon as part of the lender’s risk management of their entire ‘lending book’s’ portfolio.
Some lenders will be prepared to accept what they consider to be riskier mortgage terms in return for a higher return on the loan. Others are keen to keep risk lower and therefore lend more ‘vanilla’ debt to less risky borrowers. But it’s not just the profile of the borrower that will be part of the lender’s lending criteria.
In fact, that is just a small part of the underwriting process. In addition, lenders will have policies with regard to;
- Maximum Loan Value
- Loan to Value %
- Number of applicants that may apply on any one loan
- Minimum deposit amount
- Personal Circumstances (i.e. married or single, employed or self-employed, past employment history, adverse credit history, etc)
- Address history (including BFPO addresses)
- Policy with regard to shared ownership
- Remortgage policy
- Early repayment policy & fees
- Mortgage Type (i.e capital repayment or interest only, etc)
- Valuation Charges and Admin Fees
- Acceptable Property Types (e.g. Thatched houses, flats over shops, multi-storey flats over say 5 stories, etc)
- Acceptable Tenure (i.e long leases / leases under 50 years, etc)
- Supporting documentation and affordability criteria
- Stress Test Criteria (i.e changes due to loss of income or increased interest rates)
Nationality & Immigration status
Each mortgage lender will have different terms and in most cases these terms are non-negotiable. The bad news is that finding the right lender to lend you a mortgage can be very time consuming. The good news is, Mortgage Required can offer you advice and mortgage options based on lender’s criteria and your own personal circumstances. It’s what we do.
One lender’s ‘no thanks’ can be another lender’s ‘yes please’! Why not contact us to see just how we can help you through the process?
For more information or to speak to a mortgage adviser, contact us on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
UK Housing Market Round-Up: 2025
3 days ago
Property search site Zoopla has estimated that the UK housing market will end 2025 with approximately 1.15 million completed sales – 4.5% more than the previous year.
Take a look at the 2025 summary of the UK housing market.
Best UK Mortgage Rates this Week
3 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Buying in the New Year
4 days ago
If buying your first property, or moving home, is on your to-do list this year, the new year can be a great time to take this big step. In this short blog, we look at what you need to consider as you plan and prepare for your home-buying journey.
Just because the Bank of England decides to reduce the base rate, this doesn't automatically mean that your mortgage rate will go down.
Autumn Budget 2025: A Summary
26 Nov 2025
Chancellor, Rachel Reeves, has delivered the Autumn 2025 budget. We have summarised the government's plans for tax and spending.
Renters' Rights Act
14 Nov 2025
The Renter’s Rights Bill became law at the end of October, which means it has been signed off by the King, and it is now the Renters’ Rights Act. Despite this becoming law, these changes are likely to start changing within the next six months, with the aim of being fully implemented throughout 2026 and into 2027.
A welcome change in school is coming as financial literacy is due to become compulsory in schools in England.
The Government has announced that as part of the new national curriculum, children in primary and secondary education will be required to learn about budgeting, compound interest, managing money, and mortgages.
The top 10 most beautiful villages in the world
24 Oct 2025
Forbes has published a global ranking of stunning locations and one popular picturesque corner of the UK has nabbed top spot.
More information
Trusted by
