Coronavirus continues to have an impact on many people’s income, and with the furlough scheme now extended until March 2021, Coventry for intermediaries has recently clarified their income policy.

They have also stressed how important it is that no one proceeds with a mortgage that’s unaffordable. Therefore brokers are reminded that they are obliged to inform the lender of any material changes to any applicant’s employment and/or income at any stage of an application process.

Furloughed income

New business applications – They continue to no longer accept furloughed income for employed applicants.

Existing customers – If your client is an existing customer who is looking to move, complete a transfer of equity or take additional funds, they will consider each case individually.

Pipeline cases – Where notified the client is now furloughed and can’t confirm a return to work date, their affordability will be reviewed based on their furloughed income. If their employer is topping up their salary, this top up amount can be considered where it can be evidenced.

Where furlough income is not sufficient to support the requested loan amount, the applicant can choose to continue with a lower loan amount (which meets the affordability criteria) or cancel their application.

Self-employed income

New business applications – Coventry only accept self-employed cases where the applicant has been trading for at least 3 consecutive months. If the applicant is not currently trading then the case should not be submitted.

Existing customers – If your client is an existing customer who is doing a further advance, transfer of equity or porting, and doesn’t meet the criteria for new business, these cases will be individually reviewed.

Pipeline applications – Where the lender is notified that a self-employed applicant is no longer currently trading, their case will be individually reviewed.

Visit Coventry for intermediaries Coronavirus support page