Coronavirus / COVID-19

We have made some temporary changes to how we assess income due to Coronavirus / COVID-19 and the uncertainty in regard to certain income types.  Please note that these changes impact pipeline cases in addition to new business and we will be in touch if any additional information is required. 

We have also made some changes to mortgage offer extensions.

Full details below:

Income

Employed Furloughed Customers - Where an applicant is on the Government Coronavirus Job Retention Scheme income will not be used for assessment of affordability whether topped up or not.  If an applicant has returned to work on part time hours but also receives furloughed income, the income relating to the part time hours alone can be used for affordability.

For joint applications which remain affordable on the other customer’s income, employment details should be captured and income keyed as £1 for the furloughed customer.

Employed Non-Furloughed – If applicants are not on the Government Coronavirus Job Retention Scheme they will be able to proceed as per standard policy. Income entered must reflect the amount that they are in receipt of at the point of application, where their employer has temporarily or permanently reduced their salary.

Pipeline Cases – Business placed with us before 16 June will continue to be manually underwritten, in line with the policy and evidencing requirements as at the date of the application.

Self Employed Customers – These cases will only be considered where recent proof of business turnover can be provided and assessed against normal annual evidence. All cases will be referred to underwriting for manual assessment and must be accompanied with the latest 3 business banking statements.

Customers on a Payment Holiday - These cases will be referred to underwriting for manual assessment.

Mortgage offers

  • 4 Week extension (as per standard policy to allow cases to complete)

    • No standard requirement to re-assess credit worthiness, affordability, income verification, policy

    • If an applicant’s income has reduced permanently or temporarily and/or they are on the Government Coronavirus Job Retention Scheme or Coronavirus Self-employment Income Support Scheme then will be referred to underwriting for manual assessment.

  • 3 Months (as per UK Finance guidance where customer has already exchanged contracts)

    • House purchase only and where customer has already exchanged contracts

    • Verification of exchange of contracts required via confirmation from conveyancer (email/letter previously sent to customer containing conveyancer confirmation of exchange of contracts is acceptable)

    • No standard requirement to re-assess credit worthiness, affordability, income verification, policy

    • If an applicant’s income has reduced permanently or temporarily and/or they are on the Coronavirus Job Retention Scheme or Coronavirus Self-employment Income Support Scheme they will be referred to underwriting for manual assessment.

  • 6 Months (as per new build process)

    • House purchase or remortgage where customer has not already exchanged contracts, but delay due to coronavirus means customer cannot complete within the original 6 month offer validity period

    • We will perform a new credit search, review affordability, need new income verification and ensure still meets current policy requirements.

    • If an applicant’s income has reduced permanently or temporarily and/or they are on the Coronavirus Job Retention Scheme or Coronavirus Self-employment Income Support Scheme they will be referred to underwriting for manual assessment.