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.
For applicants that have been furloughed under the Coronavirus Job Retention Scheme for Employed workers, we’re outlining what income we will accept.
To claim, employers must designate affected employees as ‘furloughed’ and notify employees of this change. The employee remains employed by their company while furloughed but can’t undertake work for them.
The employers will be given 80% of furloughed employees wage costs, up to a cap of £2,500pm (£30k per annum). The employer can opt to fund the difference between the payment and the employee’s salary but isn’t obliged to do so.
If your client is employed and has been furloughed, we may consider the application, subject to the following:
In addition to our existing self-employed criteria, applicants will now need to provide the last 3 months of business banks statements in order for us to assess income.
We will contact brokers to confirm the following:
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.