Improvements to our income evidence requirements

From Wednesday 23 November we’re improving our income evidence requirements to make it easier for your intermediaries to do business with us. As a reminder, we’re also changing the way we assess affordability on Buy to Let mortgages.

Residential applications – bonus, commission and overtime primary income

Following your feedback, we’re simplifying the evidence we need to support bonus, commission and overtime primary income that is paid monthly or more frequently.  Plus it’ll be easier to input these figures into our affordability calculator where your intermediaries’ clients are paid weekly, fortnightly or four-weekly.

Frequency of paymentEvidence required
MonthlyLast three months’ payslips
Four-weeklyLast three four-weekly payslips
FortnightlyLast two fortnightly payslips plus one payslip from each of the previous two months
WeeklyLast four weeks’ payslips plus one payslip from each of the previous two months

Please note if the YTD figure on the payslips doesn’t support the bonus, commission or overtime calculation, make sure your intermediaries provide an explanation in the full mortgage application.

As a reminder, we only need bank statements as income evidence for applications over 90% LTV.

Buy to Let applications – pension income

We’ll consider pension income for Buy to Let (BTL) applications. This means that pension income can now be can considered on its own or combined with basic salary or self-employed taxable income subject to our BTL lending criteria.

REMINDER – Buy to Let affordability assessment

We’re changing the way we assess affordability on Buy to Let (BTL) mortgages as follows:

BTL rental cover is increasing from 125% to 145%

Single affordability rate of 5.50% up to and including 75% LTV will be applied.

Pipeline applications

All full mortgage applications (FMAs) already submitted through Introducer Internet by close of business on Tuesday 22 November will not be affected and will continue to be progressed using our existing lending criteria.

 

Any cases submitted as an FMA from Wednesday 23 November, or where a material change is made to an FMA submitted by close of business on Tuesday 22 November, will be assessed using our new lending criteria.

Further support on our website

Our affordability calculator, Buy to Let calculator, residential lending criteria, Buy to Let lending criteria and evidence requirements guide will be updated to reflect these changes on 23 November.

If you have any questions please don’t hesitate to get in touch.

Kind regards

Brad Fordham

Santander for Intermediaries

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