Income
23/08/2017
Applications with more than 2 applicants
- If there are more than 2 applicants applying for the mortgage with the Society we will use 100% of the first 2 applicants’ income only, except where the additional applicants are immediate family members, in which case we will consider up to 4 incomes, subject to affordability
- All applicants must be UK Tax Payers and resident the UK. In arriving at eligible income the following may be taken into account:
| Basic Salary | 100% |
| Shift Premium | 100% |
| Stipend Income | 100% |
| Private Pensions | 100% (4% of SIPP pot value) |
| State Pension | 100% |
| Invalidity and disability benefit | 100% |
| Regular overtime/bonus/commission | 50% |
| Zero Hours Contracts | 50% where another applicant has a primary income source usable at 100% |
| Second job | 100% if combined hours do not exceed 40 per week 50% if combined hours exceed 40 per week |
| Area Weighting allowance | 100% |
| Car Allowance | 100% |
| Rental income (unencumbered properties) | 100% |
| Rental income (encumbered properties) | 100% of any surplus rent above 145% of the mortgage commitment |
| Maintenance payments | 100% under court order 50% with no court order |
| Income Protection Insurance | 100% |
| Working Family/Child Tax Credits | 50% where supported by main income |
| Child Benefit | 50% where supported by main income up to £60k |
| Investment Income | 50%* |
| Foster Care Income | 100%**
50%** (for Credit Repair Applications) |
*average of the last two years provable income will be used to calculate the figure to apply the 50% to
** subject to satisfactory evidence/accounts and proof that there has been foster caring arrangements for at least 12 months
- Where basic salary has been reduced because of salary sacrifice, the amount of income taken into account shall include the amount of salary sacrificed
- Regular overtime and bonuses must be evidenced by at least 3 months wage slips and the latest P60 or an employers reference
- Commission paid in addition to a basic salary, which forms more than half of a person’s income may be taken into account at a rate of 50%, subject to the latest 3 months pay slips and last 2 years P60’s or an employers reference