When determining affordability, applications will be declined when the credit score confirms the applicant has opened three or more accounts e.g. credit card or personal loan in the last six months or their overall outstanding commitment balances (i.e. unsecured and secured) have increased by more than 20% in the last three months and:
- The total monthly payments for unsecured commitments are more than 20% of gross monthly income - based on
combined unsecured commitments and the amount of income used in affordability for joint applications.
- The balance of total unsecured commitments is more than 100% of gross annual income - based on combined unsecured commitments and the amount of income used in affordability for joint applications
Where additional borrowing is being used to repay unsecured debts, the amount being raised for debt consolidation must not be greater than 20% of the property value.