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7 June 2010  |  News

Lending policy changes

What’s happening?

On Wednesday 9 June we are making updates to C&G mortgage lending policies.

 

Key changes

From Wednesday 9 June:

 

• Where the customer is on a probationary period with their employment at the time of application, this income can be used.

• The following options will no longer be available on the ‘Occupation Details’ screen. If you wish to use these types of income ‘other’ must be selected and 60% of the amount will be used in the affordability calculation:
  • Overtime
  • Bonuses – weekly/monthly/quarterly
  • Commission
  • Shift allowance
  • Town area, car, housing or clothing allowance
  • Mortgage subsidy
  • Nursing bank/contractors (new acceptable income)

  Income types other than those listed above, or that do not appear in the dropdown menu can not be entered.

• The following types of income are no longer considered acceptable:
  • Piecework
  • Investment income
• Where a customer has financial commitments that are going to be repaid in the next three months, this must be included on the ‘Outstanding Commitments’ screen and the ‘to be repaid in full’ button must be ticked. Therefore any commitments that are not coming to an end and will not be repaid within three months will be included in the affordability calculation.

• For clarification of policy around temporary employment and fixed/short term contracts, please refer to the Lending Policy pages on the Intermediary Website.

Porting and transfer of equity applications without additional borrowing will be unaffected by these changes.

 

Support for you

The Intermediary Website will be updated on 9th June with these changes.

 

 

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