If your client has a financial commitment with four months or less to run at the time of agreement in principle or full mortgage application (FMA), you don’t need to include this in the ‘Financial commitments’ section of Introducer Internet, provided they don’t intent to take on a new credit agreement to replace the existing one.
This will mean the financial commitment will be excluded from the affordability calculation.
Please update the ‘General notes’ section of the FMA to confirm the commitment has been excluded by providing:
- Applicant name
- Commitment type
- Balance
- Lender
- Monthly payment
- Confirmation that your client doesn’t intend to take on a new credit agreement
Please note that if your client has a financial agreement which has a balloon payment associated to it, this must always be declared as a financial commitment, regardless of the outstanding term.
Further help and support
Our lending criteria has been updated to include this policy.
If you want to know more about the above, please call your dedicated contact.
