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Temporary income criteria changes

We’ve made a number of changes to the way we assess income to ensure we continue to lend responsibly and support and protect all customers.

Our updated policy for assessing income is as follows:

Application Processing

New applications

Please ask your applicant(s) if their income is impacted by the COVID19 pandemic and based on the customer’s response, process the application in line with our updated assessing income policy.

Pipeline applications (applications received prior to 07/04/2020 but have not yet reached offer stage)

We will proceed as stated unless you inform us of a change to their financial situation in which case the new application guidance will apply.

Post offer applications

We will proceed as stated unless you inform us of a change to their financial situation in which case the new application guidance will apply.

Employed Income

For furloughed employees, we will assess affordability based on 80% of basic income up to a maximum of £30k p.a. gross.

Please input the furloughed income in the application.

Where top-up income is being paid by the employer, the affordability will be based on the level of income being received.

Please input the actual income (i.e. including top-up salary) in the application.

Evidence will be required to validate furloughed/top-up income.

All applications where furloughed income or top-up income is being used will be reviewed by an underwriter.

Variable Income

Bonus, commission and overtime will no longer be an eligible source of income with the exception of NHS employees where variable pay/overtime will be acceptable based on pre-March 2020 levels.

Please do not complete this section of the application, unless your customer is an NHS employee.

Zero-hours Income

Zero-hours income will be limited to certain professions and where the income has been received for a minimum of 12 months. Income can only be included in joint applications where the customer is not the primary earner and works in one of the following fields:

  • NHS Bank Nurses and Locums;
  • Non-NHS Bank Nurses;
  • Care Home workers;
  • Supermarket workers (including delivery drivers)

Please do not complete this section of the application, unless your customer falls into one of the above professions.

Self-employed Income

(Sole Trader, Partnerships, LLPs with less than 200 partners, Limited Companies)

Latest three months’ worth of business bank statements are required for all customers (online statements/screen shots will be acceptable). The latest date showing on the statements needs to be within a week of the application start date.

In line with the current process, input 100% net profit amounts for the current and previous accounting years in the application.

All applications will be reviewed by an underwriter.

This website is for the use of FCA authorised mortgage intermediaries only.

If you reproduce any information contained in this website, to be used with or advise clients, you must ensure it follows the FCA's advising and selling standards.

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