Other income criteria

We'll require an HMRC tax assessment. If this is not available, we can accept an accountant's certificate covering the last 2 years' income figures and the applicant's share of net profit.

Key as self-employed income.

If the rental income is shown on your client's SA302, you can key this as self-employed income.

As proof, we need the applicant's latest 3 months' bank statements showing the net rental payments. This must be paid to your client by Direct Debit or Standing Order.

If payments have changed, such as a reduction due to repairs or a rent increase, we will accept a mix of bank and Association of Residential Lettings Agents (ARLA) statements.

We treat let properties as self-financing where the property is let on an Assured Shorthold Tenancy and the rent received is at least 160% of the current mortgage payments.

If the rent received is less than 160% of the current mortgage payment, we'll include the difference in the affordability calculation.

You can either key the mortgage as an outgoing and key the rental income, or key the income from the SA302 as self-employed.

Do not key the personal buy to let mortgage for affordability. If your case declines, contact your BDM.

If there is a simultaneous The Mortgage Works Let to Buy application submitted for an existing residential property, we will not consider the outstanding balance. You can find further guidance in our Let to Buy processing guide (PDF, 574KB).

As proof, we need the applicant's latest 3 months' bank statements showing the net rental payments. This must be paid to your client by Direct Debit or Standing Order.

If payments have changed, such as a reduction due to repairs or a rent increase, we will accept a mix of bank and Association of Residential Lettings Agents (ARLA) statements.

We'll require further proof of eligibility for all applications where bank statements are held in joint names with an unknown third party.

Key as rental income from an unencumbered property.

No proofs are required, key as Child Benefit.

For the below, provide the latest award notice. Key as State Disability Benefit.

Do not share any of your client's health or medical information with us.

• Armed Forces Compensation Scheme
• Armed Forces Independence Payment (If used as income, your client cannot include PIP, DLA or Attendance Allowance in their income.)
• Attendance Allowance
• Carers Allowance
• Disability Living Allowance (DLA)
• Industrial Injuries Disablement Benefit
• Infected Blood Support Scheme (IBSS) - Including schemes in England (EIBSS), Scotland (SIBSS), Wales (WIBSS) and Northern Ireland (NIIBSS)
• Personal Independence Payment (PIP)
• Reduced Earning Allowance
• Scotland: Adult Disability Payment
• Scotland: Child Disability Payment

For the below, provide the latest 3 months' bank statements or the latest award letter. Key as Universal Credit/Tax Credits.

• Adoption Allowance (applicant must have a dependent aged 11 or younger)
• Bereavement Support Payment / Widowed parents allowance (applicant must have a dependent aged 11 or younger)
• Employment & Support Allowance (ESA)
• Special Guardianship Allowance (provide bank statements and latest award letter)
• Universal Credit

We'll use an average of the last 3 months' benefit payments. If the latest bank statement doesn't show the payment, we can't accept that income.

If bank statements are held in joint names with an unknown third party, we'll require further proof of eligibility.

If your client owns a company that will provide income into retirement, we need an accountant's certificate as proof.

Key this as investment income.

As proof, provide your client's latest annual statement of pension.

Key as pension income.

If the statement of pension shows it is awarded jointly, key 50% against each applicant.

We can accept any of the latest available:

• annual statement of pension
• payslip from the pension provider
• letter from pension provider
• P60 from the pension provider

Key as Pension income.

As proof, provide the War Disablement or War Widow(er) Pension Notice.

Key as pension income.

As proof, we need a letter from the fostering agency. This must confirm the total income paid for each of the last 2 years. It must also tell us that the current income is likely to continue at the same level for the foreseeable future.

Key as self-employed income. You must also include the fostered children as dependents.

As proof, we need a copy of the applicant's IPI policy schedule.

We will also need confirmation that there will be a payment made. This could include the latest payslip or a letter from the insurer.

Key as employed income.

This can also include dividend income from a portfolio, or shares in a business.

As proof, we need a letter from the solicitor, accountant, or trust administrator with details of the value and nature of the investment income.

We can only accept investment income of a guaranteed amount which will continue for the foreseeable future.

Key as investment income.

As proof, we need three months' bank statements with evidence of payment. We'll only accept payments your client has received for at least three months. If there is a difference in the amounts received, we'll use the lowest figure for affordability.

If your client used to receive payments into a joint account with the person now paying maintenance, we'll require the latest full month of maintenance payments to be made into a sole account, with no ongoing joint association to the maintenance payer.

We'll also require further proof of eligibility for all applications where bank statements are held in joint names with an unknown third party.

Key as maintenance income.

Employed applicants

Is your client is due to start, or already on, parental leave?

We need one of the below:

• The latest payslip showing they are on parental leave. For example, Statutory Maternity Pay information and the payslip prior to going on parental leave.
• A copy of the letter received from their employer confirming the terms of their parental leave.
• A copy of their return to work letter.

If providing a letter from the employer:

• It must have your client's address.
• It should confirm their return to work income.
• It should not be addressed to us or to whom it may concern.

If the letter does not confirm their return to work income, we'll require the last payslip issued before your client started parental leave.

Key as employment income.

Self-employed applicants

Key as self-employed income.

Bonus, overtime and commission

We can only accept bonus, overtime or commission when an applicant has been on parental leave for less than 3 months, or where they have taken less than 3 months parental leave total.

If your client has returned to work, the bonus, overtime or commission received during the parental leave period can still be used.

For proofs and keying instructions, see our Bonus, overtime and commission criteria.

For applicants who are on or due to go on parental leave, you'll need to include the existing and future childcare costs as outgoings. You'll also need to declare the future number of dependents.