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Updated affordability assessment and other important changes
On Tuesday 27 September, we’re updating our affordability assessment and introducing a new version of the accountant’s certificate. We’re also like to remind you of the 2020/2021 self-employed income evidence cut-off date.
Affordability assessment
As a result of the August Bank of England base rate increase, we’re changing some of our residential and Buy to Let (BTL) affordability rates. Our affordability and BTL calculators will be updated to reflect these changes. Please use these calculators to make sure you get an accurate reflection of what we can lend your clients.
Pipeline rules
Our usual pipeline rules will apply. All full mortgage applications (FMAs) already submitted on Introducer Internet by close of business on Monday 26 September won’t be affected by these changes. Any FMAs submitted from 6am on Tuesday 27 September, or where a material change is made to an FMA submitted before close of business on Monday 26 September, will be assessed using our updated lending policy.
Accountant’s certificate changes
From Tuesday 27 September an updated version of the accountant’s certificate will be available on our website.
We’ll continue to accept the old certificate (April 2022) on FMAs already submitted on Introducer Internet by close of business on Thursday 27 October. Any FMAs submitted from 6am on Friday 28 October will need to use the new updated accountant’s certificate (September 2022).
Reminder: 2020/2021 self-employed income evidence cut-off date
For all self-employed income evidence, the most recent year end must not be more than 18 months before the date of the application. This means for applications submitted from Thursday 6 October, the evidence of the most recent year end cannot be for the 2020/2021 tax year, and we’d need more up-to-date income evidence.
On Wednesday 28 September, we’re temporarily removing all 60% and 85% LTV products from the new business range. The majority of our new business residential and Buy to Let fixed rates also will increase by up to 0.40% and product transfer fixed rates will increase by up to 0.30%.
In addition, following last week’s Bank of England base rate increase from 1.75% to 2.25%, the pay rates on all our new business and product transfer base rate trackers (including Follow-on Rate) are increasing by 0.50% to reflect this. This is also with effect from Wednesday 28 September. No action is required for pipeline cases.
We must receive FMAs for products in Rate Bulletin (Issue 17) by 10pm on Tuesday 27 September.