What are...

Underwriters

In credit terms, Underwriters are the people who subjectively assess your application. They will examine the risk involved with lending to you, and whether they are willing to accept this level of risk before accepting or declining your credit application.

Much of their focus is on establishing your creditworthiness, which can be gained by examining your Credit Report. For this reason, the information on your Credit Report is crucial to the outcome of your credit applications.

How do I see the information that Underwriters will look at?

You can see the information that Underwriters will see by checking your Credit Report for yourself. checkmyfile makes this process quick and easy by collating your information from Equifax, Experian, TransUnion, and Crediva all on the same, easy-to-use platform.

You can view your Multi Agency Credit Report free for 30 days, then just £14.99 per month, which you can cancel online at any time.

Your Credit Report is a detailed record of your financial position, showing your credit history, people you’re financially associated with, your court records, and much more. The information on your Credit Report has a direct impact on your creditworthiness, so it’s worth ensuring that yours accurately represents your financial standing before applying for finance.

How do Underwriters assess my affordability?

Underwriters check your regular monthly outgoings compared to your income and assess whether they deem it likely you will be able to afford to make their repayments on top of your other commitments. Mortgage applications often ask for more detailed information than most loan or finance applications, with expenditures such as fuel and food costs often needing to be estimated as well.

Mortgage underwriters will often ‘stress test’ your income as well, meaning they want to make sure you’ll have enough money left after paying your mortgage to cope with any unforeseen circumstances that aren’t usually factored into monthly bills.

It’s worth noting that creditworthiness and affordability are two separate factors that are assessed by Underwriters when you apply for credit. We’ve discussed the difference between the two in this article.

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