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Commitments & Expenditure
Our current expenditure model uses ONS data to determine the applicants monthly expenditure costs based on the number of adults and dependants in each household.
Each month the rate of inflation applied to the ONS data may be amended.
Where any of the Homeowners or Income Boosters have current formal or informal committees in place, the commitments must be disclosed following the logic below.
We use Experian data and personal bank statements to verify this information.
Where the customer is using a revolving credit facility, e.g. a Credit Card or Overdraft for everyday transactions and repays the balance in full each month, the commitment may be excluded where;
- the payment does not exceed the customer Net monthly income
- the repayment is covered by income (Not drawing on savings or additional borrowing)
This will be verified against the last 6 months payment history confirmed on Experian.
For any standing revolving credit facility balances, 3% of the balance will be included as an expense.
Where an installment loan is present (e.g. Personal Loan) the loan payment should be included as expenditure.
Where a customer is looking to consolidate debt as part of our transaction upon completion (Remortgage with additional borrowing), all the debts must be included.
Where any debts are due to be repaid prior to completion, please provide full details to your BDM.
Student Loans should only be included where they are currently being repaid. Where the customers annual income does not meet the minimum threshold to begin repaying, it should not be included.
Maintenance: Where the customer is required or is committed to pay maintenance, these payments should be included.