We have updated our Residential Mortgage Calculator to ensure that your self employed customers can have their affordability accurately assessed. You will no longer be required to contact your BDM for the majority of cases.
The calculator will have four additional fields you will need to populate:
- Loan amount on Capital and Interest Cases
- Self employed applicant 1 and 2
- NatWest product rate
- Personal loan balance including car finance and credit card balances
What you need to do:
You will need to capture the additional information for self employed customers to ensure a robust assessment of the customer affordability can be completed.
Please note that passing this affordability calculation is not a full agreement of the case. Underwriters may still decline cases which pass affordability calculations. Other than the examples highlighted below, there are no exceptions to this process and the underwriter’s decision will be final and cannot be appealed.
Where you have a ported application or a joint case where the affordability can be met using the employed applicants income only you should speak with your NWIS BDM who will give you further guidance before submitting your application.
Further guidance and support is provided on the below FAQ’s:
FAQ’s:
Q1. If a customer has a HP agreement on a car that has a balloon payment, does the payment need to be included in all circumstances?
Answer – No, the amount that should be included is just the HP deal e.g. customer has a £300 p/m deal over 24 months, amount that should be included = £7,200
Q2. Do student loans need to be included?
Answer: Yes
Q3. Does the balance on Help to Buy need to be included?
Answer: No
Q4: Does a credit card balance need to be included, even if it is intended to be paid off?
Answer: Yes
