We’re here to support you

To ensure that we work together to get the best service for you and your client, our Delivering Service Together page gives our top tips for submitting a case to avoid delays and details on how to track your case.

To keep you updated on how we process your business and to help you navigate how we can support you, we have listed below some of the regular questions that you ask our team and thought it would be helpful to share these rather than you having to contact us. 

Temporary income criteria changes

Multiple above 4.5 x income is capped at 80% LTV.

New applications will be subject to a full assessment by an underwriter. It is recommended that before submitting an application you contact your BRM. As a responsible lender, we need to ascertain and confirm whether the sustainability of income has been affected by COVID-19.

All self-employed applicants will be required to submit their latest 3 months' business bank statements, which must clearly demonstrate that trading has been maintained at a level sufficient to support the level of income used within the affordability assessment. 

Things to consider prior to submitting a case:

Is the applicant's self-employed business currently experiencing or anticipating any future adverse effects, reduced income levels, as a result of COVID-19? If yes, please provide an overview of the impact.

Has the applicant received any assistance from the Self-Employment Income Support Scheme (SEISS) or any other associated government funding? Income received via SEISS Grants is permitted as a source of income where it has been documented in the tax calculation. These grants must be deemed a replacement of income that would have been received if the business were trading as normal. In addition, the latest 3 months’ business bank statements must demonstrate that the business has resumed trading following the pandemic and must support the level of income used within the affordability assessment.

Has the applicant requested any payment deferrals on any of their secured and unsecured debts? If yes, we will require details of their current position on these.

Bounce back loans & CBILS (Coronavirus Business Interruption Loan Scheme)

Where the business is in receipt of a bounce back or CBILS loan, the repayments will need to be included in the affordability assessment. Therefore when submitting an application where either of these facilities have been acquired, please ensure the monthly repayments are included in the loans and hire purchase section (we may request sight of the loan agreement documentation to verify the repayment amount).

We have produced a helpful 'Self-Employed Covid-19 Impact Sheet' to assist you with covering our requirements. You’ll be asked to upload this as a checklist item once the case has been assessed by an Underwriter.

When submitting your Full Mortgage Application (FMA), to help us accurately complete the initial underwrite of your application and instruct valuation, our minimum requirements are:

  • Self-employed applicants (minimum 2 years)
    • Accounts/SA302s (minimum 2 full years' finalised accounting information is required)
    • Tax Year overviews corresponding to SA302s
    • Accountant's details for self-employed limited company cases
    • Latest 3 months' bank statements required

If any of the deposit is derived from a one-off drawing from the business, you must discuss the case with your Business Relationship Manager (BRM) before submitting an application.

Professional Landlords

Professional Landlords (four or more properties) may declare an income derived from property rental, where evidenced by business accounts or SA302 (ensuring the amount used to calculate the relief for finance costs is deducted from the profit from land and property figure - this figure can be found on an SA302) subject to standard self-employed criteria.

Where professional landlord income is deemed as a secondary income, the income used should not exceed that derived from the primary income.

We are not currently accepting applications whereby the clients are purchasing the property at an undervalue and/or where the equity is being gifted from family members.

Non-guaranteed forms of income will not be accepted on new applications, apart from the following exceptions:

NHS Staff
Overtime/Bonus/Commission can be used in line with standard policy (e.g. 100% where received on a monthly basis or up to 50% where received less frequently).

For the avoidance of doubt the applicant must be employed directly by the NHS with the income verified by sight of NHS payslip(s).

All other workers (Key & Non Key Workers)
Overtime/Bonus/Commission is to be capped at 50% irrespective of whether this is received on a monthly or non-monthly basis where it is evidenced and sustainable.

As this cap will not be systemised, brokers will need to ensure that any overtime/bonus or commission is input as non-monthly.

Zero hour contract/Agency workers
Our temporary policy has been reviewed and removed with policy now reverting back to our standard policy. This therefore means zero hour contracts are permitted:

  • Subject to evidence of 12 months' employment on this basis
  • Income to be based on an average of the last 12 months' earnings
  • Applications from ‘professional’ occupations (e.g. doctor, teacher etc. and qualified tradespeople where there is clear future earning potential)
  • Applications from borrowers in ‘professional’ occupations who are changing jobs will be considered. This will include qualified tradespeople where there is clear future earning potential

Our temporary policy on capital raising has been reviewed and removed, with policy reverting back to standard policy. For full details please see our lending policy.

Help to Buy and Shared Ownership
Capital raising to purchase an additional share (staircasing) permitted up to 85% LTV where the final share is being purchased. Standard policy applies where an additional share is being purchased but the borrower does not have full ownership rights.


Contact points

Our Business Relationship Managers and Intermediary Sales and Support team are of course available to help should you need to contact them.

Our Intermediary Sales and Support Team are available Monday to Friday 9.00am – 5.00pm.

 

Mortgage Offer validity

Mortgage offers are valid for 6 months from the date of offer.


Remote Video Interviews – ID Requirements

If an adviser carries out an online interview and can physically see their clients (via a medium such as skype) then we will class this for now as a face to face interview and ID requirements will be the same as an actual meeting. However, if an interview is carried out remotely without visual interaction, i.e. by telephone, then this will require additional ID as per our standard practice.

Thank you for your understanding and support during this challenging period.