As you know the governments furlough scheme has been extended, and with two-thirds of businesses having already used the government’s scheme since it was announced*, Precise Mortgages and the wider OSB group have been looking at how we can support your customers who are currently in receipt of furloughed income.
We are pleased to confirm the following that details our stance re. furloughed income. Please note that a formal communication will be going out to all brokers on our database shortly however we would appreciate your support in cascading this information to your teams and broker databases to help highlight the solutions we are able to offer.
Residential:
- Furlough income; 80% of income to a maximum of £2,500, with the use of any evidenced employer top-up over and above this
- Self Employed Income Support Scheme; current income used for affordability purposes where evidenced
- Bounce back loans and coronavirus business interruption loans; reviewed on a case by case basis, not acceptable as source of deposit
Buy to Let:
- Where the landlord has income that’s unrelated to buy to let, and in receipt of furlough / SEIS income, the application can be considered where the latest bank statement has been obtained and the underwriter is satisfied the rent / mortgage payments being made help rationalise the sustainability of the applicants BTL mortgage through the COVID 19 period
- Bounce back loans and coronavirus business interruption loans are not acceptable as source of deposit
Please note there may be additional underwriting requirements.If you have any questions regarding these changes please do get in touch with myself, Ian or Jon and we will be able to discuss this with you further. As always full information regarding our products and criteria can be found at precisemortgages.co.uk.
To help promote these changes to your database we have created a short paragraph below that we hope you find useful:
Furloughed income update from Precise Mortgages
With two-thirds of businesses having already used the government’s scheme since it was announced* , Precise Mortgages are committed to helping support you and your customers through the good times and the not so good. This is why we’ve updated our stance regarding furloughed income to help provide your customers with more borrowing options., take a look and see how we can help your customers today and tomorrow.
Click here to visit our website to find out more.
