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15 May 2006
The Association of Mortgage Intermediaries (AMI) has produced a new factsheet on credit searches for its members.
Designed to inform members about the different kinds of credit searches a lender may use, the factsheet also contains information about what information is held by credit reference agencies and what it may be used for.
Covering how credit searches work, the factsheet explains the differences between 'hard' and 'soft' footprints left on a customer's credit file by lenders.
"With lenders increasingly moving towards online decisions and sophisticated product offerings for those with impaired credit records, credit searches are now often carried out earlier in the mortgage process," commented associate director of AMI, Rob Griffiths.
"Intermediaries need to be aware when a credit search will be carried out and which type of search the lender will undertake before requesting a decision-in-principle (DIP) or submitting a client's application for a particular mortgage scheme."
The factsheet will also provide information on how different types of searches may affect a customer's ability to access credit in the future.
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