Max 5x LTI. All income should be annualised.
Minimum Income: One applicant must earn a minimum of £13K pa
Primary Income Types
100% of income can be used
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Conditions
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Evidence
3 months bank statements are required for all applicants showing relevant salary credits. Additional requirements are detailed below.
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Permanent Employment – basic salary
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Those employed on a permanent, open ended contract. Accepted within probation period excluding temp to perm.
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Last 3 months payslips if available or available payslips and Signed Contract or letter of confirmation of employment previously sent to applicant.
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Employed by family business
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Where shareholding is less than 20% applicant must have been employed by the firm for 3 months on the salary used for affordability and the level of income must be consistent for the type of work/experience of the applicant.
Where the applicants shareholding is 20% or more treat as self employed.
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Last 3 months payslips & last 3 months bank statements.
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Newly Qualified Teacher (1year contract)
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Contract must be 1 year fixed term contract.
Where 1 year fixed term contract offered as Maternity cover, and contract states can be ended earlier on return of post holder, this is acceptable subject to the Head Teacher confirming it is anticipated employment will run for the full academic year.
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Last 3 months payslips if available or available payslips and Signed Contract.
Where an NQT has yet to start employment evidence they have passed their PGCE is required prior to offer.
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Fixed term contract (PAYE)
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12 months contract history with current employer, or for qualified teachers 12 months current history of teaching, with 6 months remaining on current contract at application. Alternatively 18 months contract history in same line of work and 6 months remaining on current contract at application.
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Last 3 months payslips and copy of signed current and previous contracts covering the required periods.
Completion or contractor Declaration
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Self Employed
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Average of last 2 years Self Assessment Tax Calculation (SA302).
Most recent income proofs no more than 18 months before the date of the application.
Where there is a variation of more than 20% from one year to another an explanation must be provided.
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Last 2 years SA302 plus Tax Year Overviews
In addition for LTD companies last 2 years full accounts signed by a suitably qualified accountant.
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Music Teachers
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6 months history required. Combination of, or either, employed and self employed income can be used. Average of last 6 months annualised.
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Evidence of last 6 months income.
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Supply
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2 Academic terms in area purchasing.
Take total pay earned over last 2 terms, divide by total number of available weeks in terms and times by 38.
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Payslips covering 2 academic terms
Completion of supply worker declaration
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Bank Nurse
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6 months history in area purchasing. Average of last 6 months annualised
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Last 6 months payslips
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Locum
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6 months history in area purchasing. Average of last 6 months annualised.
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Last 6 months payslips
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Private/company pensions and annuities
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Must be payable for duration of mortgage.
See Retirement
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Projected
Full Pension projection from the pension company confirming the pension amount and period that pension will be paid.
Current
Last 3 months bank statement evidencing the payment from the pension company together with full annuity/pension letter confirming pension amount and period that pension will be paid.
Note:
Pension/annuity letter may not be handwritten or amended and must show the applicant's name and address which must match that stated on the application form it should also show pension/annuity company's name, address, telephone number and company's registration number (if Limited) and be on headed paper or show company stamp.
Completion of lending into retirement declaration
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State Pension
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See Retirement
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Payments evidenced from last 3 months bank statements for assessing future affordability in retirement Individual personal projection through Government web site required showing customer NI number
Completion of lending into retirement declaration
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Other
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Car Allowance
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Shown on last 3 months payslips
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Last 3 months payslips
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Regular Shift Allowance
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Average of last 3 months payslips
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Last 3 months payslips
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TLR (Teacher Learning & Responsibility)
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Shown on last 3 months payslips
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Last 3 months payslips
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Mortgage Subsidy
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Shown on last 3 months payslips
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Last 3 months payslips
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London Weighting/Large town Allowance
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Shown on last 3 months payslips
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Last 3 months payslips
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Child Benefit* not available where either applicants income exceeds £50K
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Available where the child is aged 13 or under at point of application
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Payments evidenced from bank statements
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Second Job – where zero hours/temporary restricted to 60%
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Must meet conditions for type of employment and been carried out in conjunction with main job for period of 3 months
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Last 3 months payslips
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Cabin Crew Allowance
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Average of last 3 months payslips
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Last 3 months payslips
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Flight Attendance Allowance
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Average of last 3 months payslips
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Last 3 months payslips
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NHS Banding/Enhanced Pay
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Average of last 3 months payslips
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Last 3 months payslips
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Other allowances which are consistent – excluding expenses. For workers employed by the NHS and Police 100% of all income can be used
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Average of last 3 months payslips.
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Last 3 months payslips
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Stipend received by Clergy
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Last 3 months payslips or bank statement entries
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Secondary Income Types
60% of income can be used.
Must be supported by a Primary Income type.
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Evidence
3 months bank statements are required for all applicants showing relevant salary credits. Additional requirements are detailed below.
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Overtime
(For workers employed by NHS or Police 100% can be used)
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Average of last 3 months to be used
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Last 3 months payslips
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Monthly Commission/Bonus
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Average of last 3 months to be used
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Last 3 months payslips
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Quarterly Commission/Bonus
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Average of last 2 quarters to be used
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Payslip showing last 2 quarterly payments
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Annual Commission/Bonus
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Payslip showing last annual payment
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Child Maintenance
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Available where the child is aged 13 or under at point of application.
Must be on each of last 3 months bank statements. Where amount varies use lowest amount.
Not available on lending over 90% or shared ownership
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Evidenced from last 3 months banks statements
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Zero Hours/Temporary Contracts
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12 months employment history must be evidenced with same employer or in same type of work
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Last 12 months payslips
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Lodger Income (Re-mortgage only)
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Lodger must not be related to applicants and must sign consent to mortgage form.
Not available on lending over 90% or shared ownership
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Evidenced from last 3 months bank statements
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Tax Credits
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Lowest Projected figures contained in the award notice to be used.
Available where the child is aged 13 or under at point of application.
Award notice must reflect, broadly, circumstances under which mortgage is applied under for relationship status, income and childcare costs.
Not available on lending over 90% or shared ownership
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Full Tax Credit Award Notice
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Stipend / Bursary
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12 months remaining
Not available on lending over 90% or shared ownership
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Letter confirming amount, frequency and award period.
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DLA/PIP
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Must be in relation to the applicant or a dependant.
Not available on lending over 90% or shared ownership
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Evidenced from last 3 months bank statements and award letter
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Future Income
New Jobs
Newly Qualified Teachers
Newly Qualified Teachers can complete 2 months before their role commences subject to evidence being received that they have passed their PGCE prior to the mortgage offer being issued.
Other applicants
Where an applicant is commencing new employment completion is unaffected subject to the mortgage being affordable on both the current salary and future salary. Where affordability is reliant on the new salary completion can take place 2 months before the new role commencing subject to the applicant being currently in employment.
For applicants employed by a family business 3 months employment history evidenced by payslips and bank statements is required.
Pay rises
Where an applicant has been awarded a pay rise with their current employer the most recent payslip showing the increase or award letter sent to the applicant must be provided.
For applicants employed by a family business 3 months history of the pay increase must be evidenced by payslips and bank statements.