Residential policy
Employed
Guaranteed income
In addition to basic pay from permanent employment, we accept 100% of any contractually guaranteed income, like a car allowance or territorial allowance.
Variable income
View our bonus and variable income policy.
Probation
If the customer is in probation or has not been in their current job for 6 months, this is acceptable as long as they have a permanent contract (as opposed to short term) and they’ve received their first payslip.
Second jobs
We take 100% of income from a second job where the income has been received for at least 12 months.
Parental leave
View our parental leave policy.
Other employed income
Agency, fixed term employment and zero hour contracts are acceptable where the customer has a 2 year track record in the same line of work, whether on a permanent basis, or as a contractor. For zero hour contracts we need a 2 year track record of that income type. If the customer has not been in their current job for a year, then we can only use their income if it is consistent with the level received in their previous job.
Seasonal or temporary short term employment is not acceptable.
Self employed
Shareholding
If the total combined shareholding of all applicants is under 20% of a partnership or limited company, we treat them as employed. If it’s 20% or more, we treat them as self employed.
LLPs
If a partner/member of an LLP is salaried with no shareholding, we treat them as employed. If they are an equity partner or receive profit share as part of their remuneration, we usually treat them as self employed.
View our self employed policy
Contractors
- View our contractor policy
- Construction Industry Scheme (CIS) income is assessed using our self employed criteria
Pension
- If a customer is already retired, or the term extends beyond their declared retirement date or their 68th birthday and they are within 10 years of either date we will use their pension income for affordability, or current income if lower
- If the term extends beyond the customer’s declared retirement date or their 68th birthday but the customer is not within 10 years of either date, we don’t need proof of income in retirement, but we do need to see that the customer is paying in to a pension plan
- For self employed customers we may be able to use the 76th birthday rather than 68th. This is subject to their line of work and business activities. Please check with us before applying
- The following types of pension are all acceptable: annuities, occupational (defined benefits / final salary, defined contribution / money purchase), pension tax credits, personal (stakeholder, SIPP), state, war, war disability
Maintenance
Income from a court ordered maintenance agreement or a Child Maintenance Arrangement is accepted if it has been received for at least 2 years and will be in place for at least the term of the mortgage.
Benefits and disability benefits
We accept the following benefits:
- Disability living allowance (DLA)
- Personal independence payment (PIP)
- Disabled persons tax credit
- Employment and support allowance (ESA)
- War disablement pension
Rental income
- On a residential application, we assess any background rental income and expenditure, including established BTLs and properties about to be let
- Unlike all other income types, rental income is not included for loan to income calculations
Other
- Other income such as income from investments, trusts, non-court ordered maintenance or income protection insurance/PHI can also be considered but please check with us before applying
- We don’t accept any foreign currency income