Updating your client’s employment/income status
With the furlough scheme now extended until March 2021, we’ve recently updated our income policy. Please remember that you are obliged to inform us of any material changes to any applicant’s employment and/or income at any stage of the application process.
New business applications – We are no longer accepting furloughed income for employed applicants.
Existing customers – If your client is an existing customer who is looking to move, complete a transfer of equity or take additional funds, we will consider and assess their case individually.
Pipeline cases – Where we are notified the client is now furloughed and can’t confirm a return to work date, their affordability will be reviewed based on their furloughed income. If their employer is topping up their salary, this top up amount can be considered where it can be evidenced.
Where furlough income is not sufficient to support the requested loan amount, the applicant can choose to continue with a lower loan amount (which meets our affordability criteria) or cancel their application.
New business applications – We only accept self-employed cases where the applicant has been trading for at least 3 consecutive months. If the applicant is not currently trading then the case should not be submitted.
Existing customers – If your client is an existing customer who is doing a further advance, transfer of equity or porting, and doesn’t meet the criteria for new business, these cases will be individually reviewed.
Pipeline applications – Where we are notified that a self-employed applicant is no longer currently trading, their case will be individually reviewed.
True to our pledge to give you two working days’ notice of product closures, our latest changes will come into effect from 8am Friday 13 November 2020.
Remember, an AIP does not secure a closing product. If an AIP refers, we cannot guarantee we’ll be able to review it before the product is closed.
So, if your AIP does refer, you should still proceed to full mortgage application to secure the product. Unfortunately applications received after 8pm Thursday 12 November 2020 will not be accepted.