COVID 19 – Temporary Changes

We know that COVID 19 (Coronavirus) continues to be a concern for you and your clients. We want to reassure you that we are doing everything we can to maintain the best possible service to you during this time.

LENDING CRITERIA

If you want to see all our lending criteria please click here

Affordability
Employed (Furloughed)

From the 2nd November any borrower who was furloughed under the government’s Coronavirus job retention scheme, must have a minimum of 1 month pay at pre-pandemic salary.

We will require the last 3 months payslips to evidence current income and that this has returned to pre-furlough amount.

We will also require the last 3 months bank statements to assess income and expenditure.

Bonus, Overtime and Commission

Bonus – maximum of 50% averaged over the last 2 years;

Overtime – maximum of 50% averaged over the last 3 months;

Commission – maximum of 50% averaged over the last 2 years;

Where any elements of a borrower’s income are reducing, including overtime, commission and bonuses the lower amounts will be used in the affordability assessment.

Self-Employed
We will require a minimum of two years trading supported by SA302’s and corresponding tax overviews, plus finalised accounts.

In addition the following confirmation in writing from the applicant’s accountant of the following:

  • That the company is still trading;
  • How (if at all) the company has been impacted by COVID 19;
  • If impacted by COVID-19 what impact this has had on profitability;
  • If the client has applied for any of the Coronavirus Support Schemes and whether they have been accepted.

If the applicant(s) do not use the services of an accountant we will require the following additional information:

  • Evidence of current level of trading;
  • 3 months business bank statements

ALL SELF-EMPLOYED CASES WITH EVIDENCE THAT THEY HAVE BEEN IMPACTED BY COVID-19 WILL BE SUBJECT TO MORTGAGE CREDIT RISK COMMITTEE APPROVAL

Process
As part of your DIP submission, we will ask you to complete a supplementary Coronavirus declaration for your applicants. It is vital that if at any stage your applicant’s circumstances change you immediately inform the Society so we can assess how this affects their application / offer. We will confirm with you immediately prior to offer whether there has been any change as a result of COVID-19