Guidance on the required documentation for your customer's mortgage application

Acceptable?  Yes

Main or Other: Other

Key on application as: Other (non-taxable)

Evidence: Latest 3 months consecutive Bank Statements showing credits or Benefit Award letter

Acceptable?  Yes

Main or Other: Main

Key on application as: Basic earnings

Evidence for residential New Business applications: 0-3 months payslips. See case packaging requirements on Full Mortgage Application as these could differ.
Only send in the specific documents requested on the portal

Evidence for Product Transfer with Additional Borrowing applications:  

-      If using basic earnings only: Latest 1 month Payslip

-      If using alongside a variable or other income type: Latest 3 months consecutive Payslips

Evidence for Buy To Let applications: Latest 3 months consecutive Payslips. See case packaging requirements on Full Mortgage Application as these could differ.

In some instances, we may be able to verify your customers income electronically.

When you submit an application, the Portal will tell you exactly what documents you need to upload. If a customer's income can be electronically verified, we won’t ask you for any payslips.

Note: Automated Income Verification is only used for new business residential applications.

The below includes the probationary period of a permanent contract:

Acceptable?  Yes

Main or Other: Main

Key on application as: Basic earnings

Evidence for residential New Business applications: 0-3 months payslips. See case packaging requirements on Full Mortgage Application as these could differ.
Only send in the specific documents requested on the portal.

Evidence for Product Transfer with Additional Borrowing applications:  

-      If using basic earnings only: Latest 1 month Payslip

-      If using alongside a variable or other income type: Latest 3 months consecutive Payslips

Evidence for Buy To Let applications: Latest 3 months consecutive Payslips and 3 months’ bank statements

Pilot/Cabin crew can have multiple elements to their income that may also benefit from tax relief, which is acceptable. Please note that expenses payments or reimbursement for costs can't be used as income.

Acceptable?  Yes

Main or Other: Main and other

Key on application as: Key according to relevant Income types

Evidence: 3 months consecutive pay slips. YTD income should support

Acceptable?  Yes

Main or Other: Main

Key on application as: Car Allowance

Evidence for residential New Business applications: 0-3 months payslips. See case packaging requirements on Full Mortgage Application as these could differ.
Only send in the specific documents requested on the portal.

Evidence for Product Transfer with Additional Borrowing applications:  

-      If using basic earnings only: Latest 1 month Payslip

-      If using alongside a variable or other income type: Latest 3 months consecutive Payslips

Evidence for Buy To Let applications: Latest 3 months consecutive Payslips. See case packaging requirements on Full Mortgage Application as these could differ.

Acceptable?  Yes

Main or Other: Other

Key on application as: Carer’s Allowance

Evidence: Benefit Award Letter

Carer's Allowance is paid to people aged 16 or over spending at least 35 hours per week caring for someone with substantial caring needs. We accept 100% of a Carer’s Allowance.

We support customers who are contractors and have dedicated information on our Contractors hub, including:

• PAYE Contract Workers including Zero hour and Agency workers.
• Construction Industry Scheme (CIS).
• Umbrella Company Contractor.
• High Income / Day Rate Contractors.

For detailed information please see our Contractors Hub.

Earning £75k,000 on a Day Rate:

Acceptable?  Yes

Main or Other: Main

Key on application as: Self-employed

Evidence: 

• Proof of Contract(s) for a 12 month period showing a minimum of 6 months completed.
• Latest 3 months business and personal Bank Statements.

Paid through Umbrella Company or Fixed short-term contract

Evidence: 

• Proof of Contract(s) for a 12 month period showing a minimum of 6 months completed.
• Latest 3 months business and personal Bank Statements.
• Latest Payslip (1 month OR 4 weeks).

Acceptable?  Yes

Main or Other: Main

Key on application as: Disibility Living Allowance

Evidence: Latest 3 months consecutive Bank Statements showing credits OR Benefit Award Letter.

Less than 20% shareholding in company:

Acceptable?  Yes

Main or Other: Main/Other

Key on application as: Dividend

Evidence:

• Latest 6 months Dividends Vouchers/ Payslips OR
• 2 years SA302/Tax Assessments

Acceptable?  No

Acceptable?  Yes

Main or Other: Main

Key on application as: Basic earnings

Evidence for residential New Business applications: 0-3 months payslips. See case packaging requirements on Full Mortgage Application as these could differ.
Only send in the specific documents requested on the portal.

Evidence for Product Transfer with Additional Borrowing applications:  

-      If using basic earnings only: Latest 1 month Payslip

-      If using alongside a variable or other income: Latest 3 months consecutive Payslips

Evidence for Buy To Let applications: Latest 3 months consecutive Payslips and 3 months’ bank statements

Acceptable?  Yes

Main or Other: Other

Key on application as: Other taxable income

Evidence: Latest 3 months consecutive Bank Statements showing credits OR Benefit Award Letter

Acceptable? Yes

Main or Other: Other

Key on application as: Other non-taxable income

Evidence: 3 months consecutive Bank Statements showing credits OR Benefit award letter

Acceptable?  No

Only acceptable if received in conjunction with DLA or PIP:

Acceptable?  Yes

Main or Other: Main

Key on application as: Other non-taxable income

Evidence: Benefit Award letter

Locum income paid on a PAYE basis, please see zero hours contract.

Locum income paid on a self-employed basis, please see self-employed.

• A variation of allowances can be received by customers to compensate for the location of their work e.g. Town Allowance, High Cost Area Allowance, Area Allowance etc.
• Consideration should be given to whether the customer is relocating as part of the application, and whether the income will continue.

Acceptable?  Yes

Main or Other: Main

Key on application as: Basic earnings     

Evidence for residential New Business applications: 0-3 months payslips. See case packaging requirements on Full Mortgage Application as these could differ.
Only send in the specific documents requested on the portal.

Evidence for Product Transfer with Additional Borrowing applications:  

-      If using basic earnings only: Latest 1 month Payslip

-      If using alongside a variable or other income type: Latest 3 months consecutive Payslips

Evidence for Buy To Let applications: Latest 3 months consecutive Payslips. See case packaging requirements on Full Mortgage Application as these could differ.

Acceptable?  Yes

Main or Other: Other

Key on application as: Child maintenance   

Evidence: Latest 3 months consecutive Bank Statements. May need Court order (where applicable). See case packaging requirements on Full Mortgage Application as these could differ.

Child maintenance:

Child maintenance can be accepted at 100%. This can either be court ordered or non-court ordered.

Court Approved Maintenance (spousal):

Can be accepted at 100%. This will be subject to underwriting and we may require sight of the court order.

• There is an expectation the payments will continue at the current level for at least the next 5 years and we may also need to understand how the customer will replace this income when it ends.
• We require up to 3 months bank statements to evidence this, please see your tailored packaging requirements upon submission of the Full Mortgage Application.
• The party paying the maintenance can’t be named on the bank account the maintenance is paid into.
• We can consider maintenance income paid by someone living abroad subject to the underwriters discretion, upon a Full Mortgage Application being submitted. This must be paid in an acceptable currency. 

Acceptable?  Yes

Main or Other: Main

Key on application as: Guaranteed Overtime     

Evidence:

• Latest 3 months consecutive payslips showing overtime.
• Contract.

Where this is paid weekly the latest 13 payslips will be required.

Acceptable?  Yes

Main or Other: Other

Key on application as: Regular overtime

Evidence: Latest 3 months consecutive Payslips showing overtime. YTD income should support.

Where this is paid weekly the latest 13 payslips will be required.

Acceptable?  Yes

Main or Other: Main

Key on application as: Employed

When a customer is on maternity or paternity leave, it is important to understand the current and future circumstances for mortgage affordability purposes.

In all scenarios:

• We require details of future childcare provision and costs, where applicable. You can use the customer declared amount, if known, or national averages.
• Ensure to capture a known increase in under 18 financial dependants.

We reserve the right to request additional information if required.

Returning to work on the same basis

We will use the customer's basic salary earned prior to going on maternity/paternity leave for affordability purposes.

In this scenario for residential applications we will need:
-      If using basic earnings only: Latest 1 month payslip prior to maternity/paternity leave

-      If using alongside a variable or other income type: Latest 3 months consecutive payslips prior to maternity/paternity leave

Returning to work on a different basis

We will use the customers future basic salary, based on a pro rata of the previous basic salary, prior to going on maternity/paternity leave, for affordability purposes.

In this scenario for residential applications we will need:

 -      If using basic earnings only, we will need a letter from employer confirming:

 The customers new hours
 Their new annual salary based on them returning on a different basis
  When their new salary will take effect

Please note, this won’t be requested on the application portal as part of basic packaging, but we will always require this.  

-      If using alongside a variable or other income type: Latest 3 months consecutive payslips prior to maternity/paternity leave. Our underwriters reserve the right to also request a letter from the employer as detailed above.

For all Buy To Let applications we will need: Latest 3 months consecutive payslips prior to maternity/paternity leave and 3 months most recent bank statements. Our underwriters reserve the right to also request from you an employers letter, as detailed above, where returning to work on a different basis. 

Where the customer is expecting a pay rise or a pending incentive payment (e.g. bonus) or they are changing their job within the next 3 months, we can accept an employer’s letter or contract to confirm the new income in lieu of latest month’s payslip* 

The contract or letter will need to confirm:

• Customers name

• Date the income change takes effect from

• New Salary/Type of income e.g main salary or a bonus payment

• Where the change is an incentive payment, the terms of this incentive need to be clear as the customer must meet our minimum track record for the type of incentive payment e.g. for discretionary annual bonus the customer would need to be able to evidence a 2 year track record of this being received 

• If using an employer’s letter this must be on headed paper

*Where the customer has a student loan deduction, we can only use an increased basic income where there is one full payslip to evidence what the new student loan payment will be.

Note: Customers must meet our minimum employment length and we may require current payslips to evidence this. When you submit an application, the portal will confirm how many payslips we need. Our underwriters reserve the right to ask for additional evidence when considering any income change. 

Acceptable?  Yes

Main or Other: Main

Key on application as: Other income - state pension

Evidence: Latest Bank Statement showing credit OR Department of Works & Pension Statement

Acceptable? Yes

Main or Other: Main

Key on application as: Disability Living Allowance

Evidence: Latest 3 months consecutive Bank Statements showing credits OR Benefit Award Letter

This income can be received alongside Child Benefit income.

Acceptable? Yes

Main or Other: Other

Key on application as: Child benefit

Evidence: Latest 3 months consecutive Bank Statements showing credits OR Benefit Award Letter

We can consider Scottish Recommended Allowance income that is received by Foster Carers.

HMRC generally treat foster carers as being self-employed. However, the SA302 is only used to determine any tax and NI payable after any qualifying amount has been deducted.

Acceptable? Yes

Main or Other: Other

Key on application as: Other non-taxable income

Evidence: Local Authority confirmation of the last two years’ payments received, along with confirmation that the customer is still a registered Foster Carer from the Local Authority.

We can use up to 100% of second job income.

We require a minimum of 6 months employment to utilise the income from a 2nd job. We will require a longer track record where the second job is not a permanent PAYE contract.

We can consider income from more than 2 jobs and would need to understand the overall sustainability of the income ie: amount of hours worked each week. 

Evidence for residential New Business applications: See case packaging requirements on Full Mortgage Application as these could differ.

Evidence for Product Transfer with Additional Borrowing applications:  

-      If using basic earnings only: Latest 1 month Payslip

-      If using alongside a variable or other income type: Latest 3 months consecutive Payslips

Evidence for Buy To Let applications: Latest 3 months consecutive Payslips. See case packaging requirements on Full Mortgage Application as these could differ.

Further information or income evidence may be requested by the underwriter during the application process.

Acceptable? No

Acceptable?  Yes

Main or Other: Main

Key on application as: Commission

Evidence: Treated as Commission; latest 3 months consecutive Payslips showing commission payments

Acceptable? Yes

Main or Other: Other

Key on application as: Universal Credit

Evidence: Latest Universal Credit Statement(s)

Universal Credit may comprise of:

• Standard Allowance - This can only be included where it can be evidenced from the award statement that the customer is employed i.e. the statement details the take-home pay. This will confirm that the customer is in receipt of Working Tax Credits and employment support allowance and not unemployment benefits. If the take-home pay shows as £0 on the statement, the standard allowance can’t be used for mortgage purposes.
• Children - This is treated the same as Child Benefit and Child Tax Credits. 
• Housing - This should be deducted from the monthly payment figure and not included for mortgage affordability purposes.

The customer must provide their Universal Credit statement(s). This must include a full breakdown of this income. Circumstances are assessed each month meaning the amount paid may change.

Please note the customer(s) named on the award statement must match the application. 

Acceptable?  Yes

Main or Other: Main

Key on application as: State pension

Evidence: Latest Bank Statement OR Pension Statement

Acceptable?  Yes

Main or Other: Other

Key on application as: Other taxable income

Evidence: Latest Bank Statement OR Pension Statement