• Frequently Asked Questions - Residential

    Find answers to popular questions or contact us.

  • We can use future income provided the new role is due to start within 3 months of a full mortgage application being submitted. For future income an employment contract can be provided as income verification. Alternatively, we will contact the new employer for an employer’s reference.

    These cases fall outside of our standard policy. Please call your BDM or the office based BDMs on 0345 307 355 (option 3) to discuss the case details before submitting.

    In Residential affordability calculations, 60% of any surplus rental income from self-funding background BTL properties will be included. To be considered as self-funding, 69% of the total rental income must be greater than the total monthly payments of all background BTL mortgaged properties. This is based on interest only at a stressed rate of interest of 5.5%.

     No, but we will factor applicant(s) credit in to the overall credit score.

    Yes. If we need an employment / accountant’s reference we will ask for this by email. So please include an email address for the employer, or accountant when you submit a mortgage application.

     

    We also accept completed references by post or fax.

     

    Our maximum loan to income multiples are below:

    Income used in affordability calculation

    LTV

    Income multiple

    More than £40,000

    ≤90%

    4.75 times income

    >90%

    4.50 times income

    Less than or equal to £40,000

    ≤90%

    4.49 times income

    >90%

    4.26 times income

    For example, on a joint application we would use 4.75 times income:

    Scenario <90% Loan to Value

    Applicant 1:

    Employed, basic salary £20,000 and £10,000 shift allowance.

    Income used in affordability calculation = £26,000

    (100% of basic salary + 60% of shift allowance)

    4.75 times income

    Total income used in affordability calculation= £41,000

    Applicant 2:

    Employed, basic salary £15,000

    Income used in affordability calculation = £15,000

    (100% of basic salary).