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FOR THE USE OF MORTGAGE INTERMEDIARIES & OTHER PROFESSIONALS ONLY

FOR THE USE OF MORTGAGE INTERMEDIARIES & OTHER PROFESSIONALS ONLY

Universal Credit

Policy

Universal Credit consists of:

  • A standard allowance
  • A range of additional elements based on personal and financial circumstances

Important: Not all Universal Credit elements are acceptable for affordability. For details, refer to Income Verification.

Evidencing Income

The names on the Universal Credit payment statement must match the names on application i.e. if joint application, this needs to be in joint names.

The following documents are required (no alternatives allowed):

  • Latest 3 months Universal Credit Payment Statements
  • Latest 3 months corresponding Bank Statements showing receipt of Universal Credit payments

Income Calculations

Use the Universal Credit calculator to determine income amounts for Mortgage Pro.

The calculator:

  • Averages the last 3 months of Universal Credit income elements
  • Subtracts any deductions (taken from Universal Credit payment statements)
  • If any month shows £0, input £0 into the calculator

Please Note

  • First-Time Buyers (FTB): If deposit source is ‘Savings’ and savings exceed £16,000, Universal Credit income will not be included in affordability.
  • Second Homes: Universal Credit cannot be used for affordability if the application is for a second home or there is a second home in the background.
  • Additional Occupants: If additional occupants are keyed on the application, Universal Credit cannot be used for affordability. Any exceptions should be discussed with your BDM prior to submission.
  • Known Changes: If there is a known change to the applicants’ circumstances affecting Universal Credit and this is required for affordability, factor this change into the application.

        Where an applicant will be receiving/starting New Job, Pay rise or Promotion in next 3 month, Universal Credit cannot be used for affordability.