| Income type | Acceptable | % Weighting | Restrictions |
|---|---|---|---|
Additional Duty/Responsibility (Guaranteed) | Yes | 100 | |
Adoption Allowance (Guaranteed) | Yes | 100 | |
Alphabet shares | Yes | 50 | We will accept alphabet shares if they have been paid and can evidenced on the borrowers last 2 years Sa302s.
The average over the last 2 years should be entered under the ‘Investment Income’ field. |
Bank Work | Yes | 100 | Income for borrowers in bank work can be considered on a case by case basis if they have 12 months continuous employment within a similar role.
NHS employees can be considered with a 3 months of bank work history. |
Benefit Income | Yes | 100 | We will not include benefit income where it is the only source of income.
Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000)
Benefit income must be in the borrower's name. |
Bonus | Yes | 50 | This must be earned in the last 12 months |
Bursary | No | ||
Capital Gains | No | ||
Carers Allowance | Yes | 100 | Must be guaranteed |
Cash In Hand | No | Not accepted for employed applicants. Accepted for SE applicants if confirmed that it is included in tax returns | |
Change of employment type | Yes | 100 | Recent changes in employment type will be reviewed on a case by case basis.
Where a borrower has moved from employed or contract work to self-employment, 1 years trading must have been completed and evidenced via an Sa302.
All changes to employment type will only be reviewed where the work remains in a similar role and industry. |
Child Benefit | Yes | 100 | Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000) |
Child Tax Credits | Yes | 100 | Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000) |
CIS Vouchers | Yes | 100 | CIS workers will be classed as contractors. |
Commission | Yes | 50 | We will not accept commission only income for an employed applicant |
Contract Zero Hours | Yes | 100 | Track record: 12 months continuous employment within that role.
The borrower must have a minimum of 3 months remaining on their current contract.
Cases with less than 12 months within the role may be considered if the applicant;
- has worked in a similar previous employment
- is working in a skilled or professional role |
Contracts Fixed term | Yes | 100 | 12 months continuous employment within the role.
Cases with less than 12 months within the role may be considered if the applicant;
- has worked in a similar previous employment
- is working in a skilled or professional role |
Deferred Shares | No | ||
Disability Living Allowance | Yes | 50 | Only for the applicant and must be guaranteed. Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000) |
Employer Housing Allowance | Yes | 100 | Must be guaranteed |
Expenses | No | ||
Family Business | Yes | 100 | Accountant to verify income or 3 payslips matched to bank statement credits |
Foreign Income | No | ||
Foster Income | Yes | 100 | 12 months track record required |
Incapacity Benefit | Yes | 50 | Must be for the applicant and must be guaranteed. Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000) |
Investment Income | Yes | 50 | The total balance of the investment divided by the term should be keyed |
Limited Company | Yes | 100 | We may accept one year trading figures as long as there is another employed owner who earns the majority of income. We will also check the accountants are suitably qualified |
Locum doctors | Yes | 100 | Income as per tax returns |
Maintenance Payments | Yes | 100 | Maintenance Income is allowable (100%) through a signed Maintenance Agreement received under court order OR Child Support Maintenance agreement subject to:
● Confirmation the agreement will be in place for a minimum of 5 years from the start of the mortgage AND
● A satisfactory track record of receipt being provided – 3 months bank statements OR Open Banking. |
Mileage Allowance | No | ||
New Role | Yes | 100 | If the borrower is due to start their new role during the application process, we will need to see a copy of their signed contract, 1st payslip and corresponding bank statement |
Overtime | Yes | 75 | Average of 3 months payslips |
Parental Leave | Yes | 100 | 100% of the borrowers returning employed income will be assessed where the applicant is returning within 12 months.
We will require evidence of how they are able to cover any period of reduced income (e.g. savings).
Refer to the Parental Leave page for full details. |
Pension (state & private) | Yes | 100 | We do not accept drawdown pension or pensions held in trust |
Permanent Health Insurance | No | ||
Personal Independence Payments | Yes | 50 | Must be for the applicant and must be guaranteed. Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000) |
Probation | Yes | 100 | No restrictions |
Rental Income | Yes | 83 | The total annual rental income for each property must be entered, along with the annual mortgage costs.
Where there are other associated costs relating to the property, such as management fees, these must also be declared or offset against the income. |
Seasonal Workers | No | ||
Second Jobs | Yes | 100 | If contracted and does not have to be in the same line of work, subject to 3 months payslips for both jobs |
Shift Allowance | Yes | 100 | Must be guaranteed |
Sole Traders | Yes | 100 | We may accept one year trading figures as long as there is another employed owner who earns majority of income |
Statutory Sick Pay | No | ||
Stipend | Yes | 100 | For PHD students if guaranteed, for work only |
Temporary Workers | Yes | 100 | 12 months continuous employment within the role |
Tronc Income | Yes | 100 | As long as it is put through to HMRC |
Trust Income | Yes | 100 | Only acceptable if this is declared as taxable income |
Umbrella Company | Yes | 100 | Treated as employed where tax is paid by employer, treat as self employed where pay own tax |
Universal Credit | Yes | 50 | Must be for the applicant and must be guaranteed and must not include the housing allowance. Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000) |
Unsociable Hours | Yes | 100 | Must be guaranteed |
Widows Pension | Yes | 100 | |
Working Family Tax Credit | Yes | 100 | Benefits cannot exceed 50% of total income. (If earned income was £6,000 then we could only accept £6,000 of benefits income, total £12,000) |