Impaired Credit Mortgage

A lender must complete reasonable and proportionate affordability checks to verify a borrower can meet repayments from usual means without financial difficulty.

A lender has the discretion to set credit limits based on its own risk assessment, including adverse credit file information, and is not obliged to reinstate limits while adverse information remains.

Lenders must conduct proportionate affordability assessments to establish that borrowers can sustainably repay loans without undue difficulty.

A Cifas fraud marker should only be applied when there is clear evidence of deliberate complicity in fraud, not merely unwitting involvement in receiving fraudulent funds.

A lender must carry out proportionate affordability checks before lending, taking into account the loan size, borrower's income, outgoings, and credit history.