Income Criteria Changes and Pipeline Update

In these uncertain times, we are continually reviewing our policies to enable us to consider the very different circumstances that your clients may find themselves in today compared to where they were at the start of 2020.

We’ve made some changes to our lending criteria in response to the Coronavirus crisis and the different levels of governmental support offered to different groups.  These changes are designed to help us to continue to lend responsibly to our members alongside our usual full Lending Criteria and are detailed in the sections below.

Employed applicants 

We will not consider applicants where their income is derived via either the furlough scheme (or subsequent Job Support Scheme).

We may consider applications where furlough income is received for a second applicant provided the reliance on this is minimal and the LTV is below 80%. This is by exceptional referral to an underwriter.

Self employed applicants

For self employed applicants, those who can prove consistent and sustainable profit throughout 2020, will be assessed in line with our standard self employed criteria. If the Society deems a business has been (or is likely to be) adversely affected by Covid-19, we reserve the right to reduce the assessable income used.

We will require 3 months business bank account statements in addition to our usual supporting document requirements for all self employed applicants.  Management accounts may also be requested if deemed necessary.

Pipeline Applications - Pre-Offer

We will contact brokers to confirm the following:

  • The applicant still wishes to proceed with their mortgage application
  • If there has been a significant change in the customer(s) income since the submission of the application. If there has been a significant change we will request confirmation of the relevant details.

Pipeline Applications - Post Offer

If the applicant has received an offer from the Society we will not proactively request information about any changes in customer’s circumstances, however, if there are any significant changes then then we would request that we are notified to ensure we continue to lend responsibly.

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