The firm also adds that some benefits will also be considered when assessing affordability where applicants meet normal employment criteria including Child Tax Credit and Working Tax Credit (or Universal Credit equivalent), 100% of Child Benefit where the children are aged 13 and under, 100% of shift allowance and 100% of over time, bonus or commission.
Peter Beaumont, deputy chief executive, said: “In a competitive market it’s imperative we’re providing our distribution partners with real life lending options that meet the needs of their customers and offer borrowing at competitive prices. The changes to residential affordability reflect the reality of the complicated circumstances borrowers are presenting when they apply for a mortgage while ensuring lending decisions remain prudent and affordable.”
