Income sustainability and affordability referrals
Following the introduction of additional referrals to our underwriters as described in the communication issued on 14 May and additional income documentation in June, we’re now making further changes to our treatment of certain income types.
Bonus, Commission and Overtime income
The allowable proportion of Bonus, Commission and Overtime income used in our affordability assessment is being reduced from 60% to 30% to reflect there may be an increased element of variance in these income types.
For certain self-employed cases, where a review by our underwriters is not deemed necessary, the additional requirement to obtain three months’ supporting bank statements will no longer be required.
The majority of contractor cases will no longer require review by our underwriters, with income verification undertaken as part of standard processing.