Last year we introduced a number of temporary policy changes as a result of the Covid-19 pandemic, limiting the use of variable income to certain employers/professions and frequencies of pay to enable us to continue to lend responsibly.
We have reassessed our lending policy and are now able to lift the remaining temporary income policy restrictions.
For any new applications submitted from Monday 15th February, the following policy changes will be applied when assessing income for employed customers:
Variable income
In addition to accepting bonus, commission and overtime paid weekly, fortnightly, four-weekly and monthly, we will now accept variable income that is paid quarterly, half yearly and annually.
Quarterly payments:
- Annual income input at the application stage will continue to be the average received across the number of payslips/award letters required (e.g. four for quarterly)
- The payslips/award letters must include a quarterly payment received on 1st January 2021 or more recently.
Half yearly and annual payments:
- Annual income at the application stage will continue to be the lower of the two year average or latest year received across the number of payslips/award letters required (e.g. four for half yearly, two for annually)
- The payslips/award letters must include a half yearly or annual payment received on 1st January 2021 or more recently.
Please continue to input the full amount of variable income as evidenced and we will use 50% within the affordability assessment.
Thank you for your continued support during these challenging times.
