Lending criteria.

Indicates if we can consider income from a zero hours contract and if so what is the minimum requirement (in MONTHS) that the applicant must have held the position for.

We can consider applicants on zero hours contracts subject to a minimum of 18 months in the position.

Displays if we will accept Additional Duty Hours as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income

Displays if we will accept Additional Responsibility Allowance as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income

Indicates if we can accept annual bonus as an allowable income type for affordability purposes.

We will accept 50% on an annual bonus.If the bonus is guaranteed and the employer can confirm this we will consider a higher percentage

Indicates if we can accept half-yearly bonus as an allowable income type for affordability purposes. 

We will accept 50% of a half yearly bonus.If the bonus is guaranteed and the employer can confirm this we will consider a higher percentage.

Indicates if we can accept monthly bonus as an allowable income type for affordability purposes.

We can accept 50% of this form of income. If the bonus is guaranteed and the employer can confirm this we will consider this at 100%.

Indicates if we can accept quarterly bonus as an allowable income type for affordability purposes. 

We can accept 50% of this form of income. If the bonus is guaranteed and the employer can confirm this we will consider this at 100%.

Indicates if we can accept car allowance as an allowable income type for affordability purposes. 

We can accept 100% of this form of income

Indicates if we can accept annual commission as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income, the applicant must have a reasonable track record of commission earnings

Indicates if we can accept half-yearly commission as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income, the applicant must have a reasonable track record of commission earnings

Indicates if we can accept monthly Commission as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income, the applicant must have a reasonable track record of commission earnings

Indicates if we can accept quarterly commission as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income, the applicant must have a reasonable track record of commission earnings

Indicates if we can accept Employers Housing Allowance as an acceptable source of income for affordability purposes.

We can accept 100% of this form of income. We can accept Police Housing Allowance for which we will use 100%

Indicates if we can accept Employers Mortgage Subsidy as an acceptable source of income for affordability purposes.

We can accept 100% of this income as long as it’s a permanent feature of an employment contract

Indicates if we can accept Employment Income from Family Business as an acceptable source of income for affordability purposes.

We can accept 100% of employment income from a family business as long as there is a suitably qualified Accountant for the business who must be able to confirm income level

Displays if we will accept Flight Pay as an acceptable source of income for affordability purposes.

We are unable consider Flight Pay as an acceptable source of income for affordability purposes.

Indicates if we can accept Foreign currency as an acceptable source of income for affordability purposes.

Indicates if we can accept Large Town Allowance as an acceptable source of income for affordability purposes.

We can accept this form of income as long as this is a permanent element of the applicants contract

Indicates if we can accept London Weighting as an acceptable source of income for affordability purposes.

We can accept 100% of this form of income

Indicates if we are able to potentially accept mileage allowance an applicant receives from his/her employer as part of the affordability assessment.

We do not accept mileage allowance as an acceptable source of income for affordability purposes.

Indicates if we can accept overtime which is paid less frequently than monthly (for example quarterly) as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income. If the overtime is guaranteed and the employer can confirm this we will consider this at 100%.

Indicates if we can accept monthly or less overtime as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income. If the overtime is guaranteed and the employer can confirm this we will consider this at 100%.

Indicates if we can accept the client’s full salary when they return to work after Parental/Maternity leave pay.

We can accept parental/maternity leave pay as long as the employer confirms in writing the applicants return to work date & salary

Indicates if we can accept salary paid in cash as an allowable income type for affordability purposes. For example, Mr Jones works as a fruit picker on the local farm and is paid weekly in cash.

We are not able to accept income paid cash in hand

Indicates if we can accept income from a second job as an acceptable source of income for affordability purposes.

We can accept 50% of this form of income as long as the applicant has had this job for a minimum of 6 months.

Indicates if we can accept Shift Allowance as an acceptable source of income for affordability purposes.

We can accept up to 100% of this income as long as they have been receiving this for at least 18 months and can evidence a P60

Displays if we will accept Standby / Call Out as an acceptable source of income for affordability purposes.

We can potentially consider Standby / Call Out as an acceptable source of income for affordability purposes. We will utilise an average of the last 3 months and then use 50% of this income.

Indicates if we can accept Supply Teacher income as an acceptable source of income for affordability purposes.

We can accept 100% of this form of income but applicant must have a minimum 18 month track record.

Indicates if we can potentially consider tronc payments (Tips etc) as an allowable income type when assessing affordability on residential applications.

We can potentially accept applicants that receive tronc payments (tips etc) when assessing affordability as long as they can be evidenced on payslips. We will take an average of the last 3 months and then utilise 50% of the annual amount.

Indicates how we assesses CIS contractor income which will either be on a self employed basis or based on the CIS vouchers

We will treat as self employed when assessing affordability of a CIS contractor and therefore will use accounts.

Indicates if we have a general ‘minimum contracting experience requirement’ threshold for contractors that must be met in order for their income to be considered.

We will require a minimum 12 months contract history in the same line of work. If there is less than 3 months remaining on the existing contract the Society will require a minimum 2 years contract history.

Indicates if we have a minimum income requirement for contractor applicants and if so what it is. 

We have no minimum income requirement for contractor applicants.

Indicates if we can consider an applicant on a contract and if so what is the minimum requirement (in MONTHS) that the applicant must have to remain on their current contract. 

We can potentially consider an application from applicants with at least 6 months remaining on their current contract.

Indicates how we assess contractor income which will either be on a self-employed basis or based on the contractor’s day rate indicated by a weekly multiplier. For example ‘Lender A’ will calculate a contractor’s income based on the weekly amount * 48 where ’48’ indicates the weekly multiplier and ‘Lender B’ will treat them as self-employed and income will be assessed in line with their self-employed policy. 

In these instances annual income will be calculated as Daily Rate X 5 days per week X 46 weeks per annum – this allows for a thirty-day period of no contract work to allow for Bank Holidays, annual leave and some “void” days between contracts.

Indicates if we are able to potentially accept a situation whereby someone is employed but takes an unpaid break from employment for a period greater than what would constitute a holiday. For example, John works 9 months of the year in an office job but in June, July and August each year he takes 3 months off in order to pursue other things (for example a seasonal second job or charity work). After the break, he returns to his office job.

We will not consider income from an applicant who takes unpaid prolonged breaks from employment with their existing employer.

Specifies if there is a minimum number of months (if so how many) employed applicants must have been continuously employed for their income to be considered in affordability.

Employment must have been with current employer for at least six consecutive months at date of application, and the applicant must be on permanent staff. If they have not been with their current employer for six months, they must have been continuously employed for 12 months. If not, then three years’ employment history must be provided.

Specifies if there is a minimum length of time a person must have been in their current job and if so how many months. 

If the applicant has been in their current job for less than 6 months, applicants must have a minimum of 12 months continuous employment history. Please refer to our Business Development Team if your customer is still in their probation period. If they are, the previous role must have been in the same line of work. This will be reviewed on a case by case basis.

Indicates if we can potentially use an applicants salary for a job they have yet to start when assessing affordability.

We can accept a pending new job salary as long as confirmed by the employer and at least one payslip provided prior to offer.

Indicates if we can potentially accept an applicants salary who are set to get a pay rise in the near future. For example, Sally is currently earning a salary of £20,000 but this will be increasing to £22,000 in a couple of months. 

We can accept a pending payrise as long as confirmed by the employer and to occur prior to completion

Specifies if we will allow a clients income to be considered for affordability if they are in a probationary period.

We can consider applicants currently in a probation period as long as this will end prior to completion and their previous job was in the same line of work. Please refer to the Business Development Team to discuss further.

Indicates if we can potentially lend on residential applications for leasehold properties that have an escalating ground rent clause.

We will not lend on leasehold properties where an escalating ground rent that double or any that increase by RPI with a review any more frequent than every 10 years

Indicates if we can potentially lend on residential applications for freehold properties where ‘Estate Rent Charge’ clauses exist.

We will not lend on freehold properties where exists any estate charge obligations against the purchaser.

Indicates if we can potentially consider applications from EU Nationals with a ‘pre-settled status’ under the EU Settlement Scheme

We can potentially lend to EU, EEA (Including Iceland, Norway and Liechtenstein) and Swiss citizens if clients can evidence that they have successfully applied for pre-settled status. Maximum LTV 80%. Applicant must have been a resident in the UK for a minimum of two years (evidenced through passport stamp or other immigration documentation), have a valid UK work permit/visa (with at least 2 years left to run until expiry) and have been working in the UK for a minimum of 2 years, employed applicants only and subject to UK tax, and hold a UK Current Account. Because of the potential short term nature of residency, non-UK nationals will be assessed on an individual basis, the applicant(s) should be of professional standing and working in one of the following sectors – Education, Healthcare, Finance & Banking, IT or Legal. Applicants must have a minimum deposit of 20% (Gifted deposits are not acceptable). Consideration will be given to employment type and potential length of stay within the UK

Indicates if we can potentially consider applications from EU Nationals with a ‘settled status’ under the EU Settlement Scheme

We can potentially lend to EU Nationals with a ‘settled status’ under the EU Settlement Scheme. A copy of their passport confirming their permanent status or a letter from the Home Office should be evidenced.

Indicates if we can consider lending on an ex MOD property

We will not consider an application on an ex MOD property

Indicates if we can potentially consider residential applications from expatriate applicants.