Lending and security guidelines

• Only income which is allowable under policy and evidenced should be used to assess affordability. 

• Income from non-applicants cannot be used to assess affordability.

• Non-Sterling income not permitted.

• Permitted.

• 100% of gross basic salary.

• Permitted

• 75% of monthly overtime, bonus and commission (where supported by latest 3 months’ payslips and P60

• 50% of regular overtime, bonus and commission paid less than monthly

• 50% of dividend income where shareholding is <25% and is related to the applicant’s occupation

• Subject to additional income not exceeding 100% of gross basic salary

The general expectation is that overtime, bonus, and commission must have been received for a minimum of 12 months.

• Permitted.

• 100% of permanent contractual shift allowance.

• Subject to additional income not exceeding 100% of gross basic salary.

• Permitted.

• 100% may be considered where evidenced and contractual.

• Subject to additional income not exceeding 100% of gross basic salary.

• Permitted.

• 100% may be considered where evidenced and contractual.

• Subject to additional income not exceeding 100% of gross basic salary.

• Not permitted.

Standard allowance:

• 100% where evidenced from the award letter that the applicant has a primary source of income (employed/self-employed – this will show in the take-home pay section of the award letter).

Child element:

• This should be deducted from the monthly payment and not included for mortgage affordability purposes.

Housing element:

• This should be deducted from the monthly payment and not included for mortgage affordability purposes.

Evidence required:

• Universal credit statement must include a full breakdown of income received and the name of the statement must match the application.

• Not permitted.

• Not permitted.

• Not permitted.

• Permitted.

• A letter from the Foster Agency confirming:

• The total income paid for each of the last 2 years.

• That income is likely to continue at the same level for the foreseeable future.

• Income assessed as lower of the average of the last 2 years or the current year.

The children in foster care of the applicants must be keyed as dependants.

• Permitted subject to

• Being received regularly and is a secondary income (50% can be used)
• Children under the age of 18 who are financially dependent on the applicant are treated as dependents
• Allowance can only be used for children under the age of 12 years
• Latest 3 months bank statement showing the amount paid by the local authority
• Confirmation that the allowance is ongoing and how long it will continue.

• Not permitted.

• Not permitted.

• Not permitted.

• Permitted.

• Where evidenced and considered sustainable

• Maximum LTV 80% where only income source

• Child maintenance can be considered where the child is 11 years of age or under.

• Permitted, subject to underwriter discretion

• Where supported and evidenced 

• Permitted.

• Permitted.

• Up to 100% of earned pension where evidenced.

• Permitted

• Up to 100% of state pension where evidenced

• Permitted.

• 50% of the rental income from an unencumbered Buy to Let or Let to Buy property maybe considered within the affordability assessment. Professional landlords (defined by 4 or more properties) may declare a secondary income, derived from business accounts or SA302, (ensuring the costs used to calculate the Relief for Finance Costs is deducted from the Profit from land and property figure) received from rental income which will be subject to standard self-employed criteria.

• Not permitted.

• Not permitted.

• Permitted.

• Income is limited to the lower of the average of the last 2 years or the current year.