The year of the underwriter

So far, 2017 has already seen lenders adopt more stringent underwriting methods after the Prudential Regulation Authority introduced new buy-to-let underwriting standards.

Claire Barrington-Jones, director of sales at Borro, said the lending industry as a whole has had time to come to terms with the Mortgage Market Review and Mortgage Credit Directive, and felt the time was right to see a change of underwriting emphasis across the industry.

“The success of smaller lenders in assessing and granting loans to clients that larger lenders have rejected, is testament to the value of experienced underwriters. 

“They are able to assess suitability from the perspective of the lender and the borrower, which ensures a compliant balance between good client outcomes and prudent lending practice.”

Claire went on to add: “Technology is a tremendous helpmate for modern lenders, particularly for initial assessment, but [it] will never be able to replace the accumulated experience of their human counterpart in dealing with complex cases that many times fall outside the norm.

“2017 could well be looked back on, in the future, as the year that the underwriter was again centre stage across the market.”