Knowledge Bank ©

Affordability Calculator Hints and Tips
Are there any hints, tips or important points to note that are useful when using our Affordability Calculator? If so, what are these?

Applicants Paid in a Foreign Currency
Will we accept an application from an applicant who is paid in a Foreign Currency?

Bonus - 6 Monthly
What percentage of a Half Yearly Bonus is an acceptable source of income for Affordability Assessment?

Bonus - Annual Guaranteed
What percentage of an Annual Guaranteed Bonus is an acceptable source of income for Affordability Assessment?

Bonus - Annual Performance Related
What percentage of an Annual Performance Related or Discretionary Bonus is an acceptable source of income for Affordability Assessment?

Bonus - Monthly
What percentage of a monthly bonus is an acceptable source of income for Affordability Assessment?

Bonus - Quarterly
What percentage of a Quarterly Bonus is an acceptable source of income for Affordability Assessment?

Bursaries
Are Bursaries an acceptable source of income for Affordability Assessment?

Car Allowance
Is a Car Allowance an acceptable source of income for Affordability Assessment?

Child Maintenance Service Payments - Applicant Making Payments
Will Child Maintenance Payments made by the applicant be ignored in the assessment of affordability?

Child Maintenance Service Payments - Applicant Receiving Payments
Will Child Maintenance Payments received by the applicant be considered in the assessment of affordability?

Childcare Costs
Will we ignore Child Care costs in the assessment of affordability? What is our policy on this?

Commission and Profit Related Pay
What percentage of Commission or Profit Related Pay is an acceptable source of income for Affordability Assessment?

Commission Only Pay
Is employment income earned on a Commission Only Basis an acceptable source of income for Affordability Assessment?

Company / Occupational Pension
Is income from a Company or an Occupational Pension an acceptable source of income for Affordability Assessment?

Court Ordered Child Maintenance
Is Court Ordered Child Maintenance an acceptable source of income for Affordability Assessment?

Dependants
Will we consider an application without taking into consideration any dependents for the purposes of affordability?

Director's Dividends
Are Director's Dividends an acceptable source of income for Affordability Assessment?

Director's Loans
Are Director's Loans an acceptable source of income?

Employed Applicants - Future Pay Rise Pending
Will we consider, in the assessment of affordability, the fact that an applicant is to receive a future pay rise which has been pending or confirmed?

Employee Benefit Trusts
Is an Employee Benefit Trust an acceptable source of income for Affordability Assessment?

Employer Value Accounts
Is an Employee Value Account an acceptable source of income for Affordability Assessment?

Expenses
Are Expenses an acceptable source of income for Affordability Assessment?

Income from a Lodger
Will we permit a room to be let out to a boarder or lodger?

Income from Trust Funds
Is Income received from a Trust Fund an acceptable source of income for Affordability Assessment?

Income Multiple used for Affordability Assessment
Where an income multiple is used for the affordability assessment, what is the maximum multiple we are prepared to accept?

Investment Income
Is Investment Income an acceptable source of income for Affordability Assessment?

Loan to Income Cap
Will we accept an application without applying a Loan to Income Cap? If so, what is our policy?

Lodger / Boarder Income for Affordability
Is renting a room to a lodger/boarder an acceptable source of income for Affordability Assessment?

London Weighting / Large Town Allowance
Is the London Weighting or a Long Term Large Town Allowance an acceptable source of income for Affordability Assessment?

Maintenance - Not Court Ordered
Is Maintenance which has been privately arranged and not court ordered an acceptable source of income for Affordability Assessment?

Maternity or Paternity Leave
Are applications from people currently in receipt of Maternity or Paternity Pay acceptable to us?

Maximum Age at End of Term Using Employed Income Only
What is the Maximum Age acceptable at the End of the Mortgage Term using Employed Income only and not taking into consideration any Pension Income?

Minimum Income - Capital and Interest Repayment Joint Application
What is the Minimum Income that we will consider for a Joint Application on a Capital and Interest Repayment basis?

Minimum Income - Capital and Interest Repayment Single Applicant
What is the Minimum Income that we will consider for a Single Applicant on a Capital and Interest Repayment basis?

Minimum Income - Interest Only / Part and Part Single Applicant
What is the Minimum Income that we will consider for a Single Application on an Interest Only and Part and Part basis?

Minimum Income - Interest Only or Part & Part Joint Application
What is the minimum income we will consider for a Joint Application where the loan is arranged on either an Interest Only and Part & Part basis?

Mortgage Subsidy from Employer
Is a Housing Allowance or a Mortgage Subsidy paid by the Employer an acceptable source of income for Affordability Assessment?

Overtime - Fluctuating
What percentage of Overtime that Fluctuates is an acceptable source of income for Affordability Assessment?

Overtime - Guaranteed
What percentage of Overtime that is Guaranteed by the Employer is an acceptable source of income for Affordability Assessment?

Overtime - Regular
What percentage of Overtime that is Regular but not Guaranteed is an acceptable source of income for Affordability Assessment?

Paid In Cash
Is it acceptable to us for an employed applicant to be Paid in Cash by their employer?

Pension Contributions
Will we ignore pension contributions in the affordability assessment?

Permanent Health Insurance
Is Permanent Health Insurance an acceptable source of income for Affordability Assessment?

Private Pension Income
Is a Private Pension an acceptable source of income for Affordability Assessment?

Reduced Income for a Defined Period
Is a Reduced Income for a Defined Period of Time an acceptable source of income for Affordability Assessment?

Rental Income as Additional Declared Income
Is Rental Income as an Additional Income to their main Earned Income an acceptable source of income for Affordability Assessment?

Rental Income as Sole Income
Is Rental Income as an applicant's Sole Income an acceptable source of income for Affordability Assessment?

School Fees
Will we ignore school fees in the affordability assessment?

Second Applicant with No Income
Will we consider an application where the Second Applicant is named on the Mortgage but has No Income to declare?

Second Job
Is income earned from either a Second Job or from Additional Employment an acceptable source of income for Affordability Assessment?

Shift Allowance
Is payment for a Shift Allowance or Unsociable Hours an acceptable source of income for Affordability Assessment?

Special Duties Allowance
Is a Special Duties Allowance paid by an employer an acceptable source of income for Affordability Assessment?

Spousal Maintenance
Is Spousal Maintenance an acceptable source of income for Affordability Assessment?

Stipend
Is a Stipend an acceptable source of income for Affordability Assessment?

Third Party Income from Person Not Named on Mortgage
Is a Third Party Income, from a Spouse, Partner, Parents etc. who is not going to be an Applicant on the Mortgage, an acceptable source of income for Affordability Assessment?

Travel Allowance
Is a Mileage or a Travel Allowance an acceptable source of income for Affordability Assessment?

Travel Costs
Will we ignore expenses for Travel in the assessment of affordability?

Vested Share Income
Is Vested Share Income an acceptable source of income for Affordability Assessment?