We'll need to consider any regular outgoings your client has in addition to their income for affordability. These include:
Outgoings
In this section we cover:
Credit and non credit commitments
If your clients are splitting their outgoings in a joint application, input half the amount against each applicant.
Adverse credit and defaults
Where there is adverse credit, we apply a range of factors to determine how we assess applications. In all cases, the application may be subject to more detailed underwriting.
Arrears
We won't normally lend if applicants are 3 or more months in mortgage arrears, depending on when the arrears occurred. We can consider applications where there are fewer than 3 months mortgage arrears.
County Court Judgements (CCJ)
We'll consider lending to applicants that have current or previous CCJs depending on the value and the date registered.
Defaults
We'll consider lending to applicants that have current or previous defaults depending on the value and the date registered.
Insolvency
We cannot accept an applicant with an undischarged bankruptcy or an Individual Voluntary Arrangement (IVA). We'll consider applicants if this has been discharged for at least 3 years.
Unsecured debts
Clients intending to pay off unsecured debt, that has more than six months to run, may be asked to provide proof that the debt has been paid off in full. This is before we can proceed to offer.
Examples of acceptable proofs we may require include:
- A credit card statement showing that the balance has been cleared
- A document from a loan company confirming the loan has been paid off
Where you're clearing more than one unsecured debt, we’ll need proof of repayment for each sole debt. Screenshots are acceptable.
We may accept if the unsecured debt is being repaid with equity from the sale of the client’s main residence.
Contact one of our experienced advisers using Broker Chat if you need more information.