Confirmation of Income
Employed Borrowers
The Society’s standard documentation requirements for confirmation of income are that the applicant submits:
- Their most recent P60 and;
- 3 recent months’ payslips (one of which must be for the month prior to application)
For mortgages where the borrowing is >80% LTV an employer’s reference will be obtained (in writing).
A previous employer’s reference should be obtained if the borrower has been in their current employment for less than 6 months.
Lending into Retirement
Where the borrowing is to be supported by pension income the following evidence should be obtained;
- Where the pension is already being received the most recent annual pension statement or latest 3 monthly pension advices. Bank statements are also acceptable.
- If future pension income, a pension illustration from within the last 12 months with projected pension income should be obtained.
- Unless advised of an earlier date the default age for retirement is age 70.
Pension income is often derived from more than a single source and the Society will accept a 100% from each source.
Required documentation for self-employed applicant’s (including company directors)
- A completed Accountant’s Certificate covering at least the most recent 3 completed years, and obtained from an approved accountant, will be accepted for borrowers who are self-employed.
- If it’s not possible to obtain an Accountant’s Certificate at least the last 3 years’ signed accounts should be obtained.
- If the applicant submits a self-assessment return to HMRC, copies of the last 3 tax calculation forms (SA302) issued by HMRC should be obtained. However as SA302s are in effect self-certification and no checks are carried out by HMRC, additional comfort must be obtained. This may take the form of confirmation of tax paid in previous years via the relevant HMRC Overview sheet, bank statements or contracts.
- Projections/estimates should be obtained if 3 years income cannot be confirmed. The business must have been trading for at least two years with the results confirmed by the accountant with an estimate/projection provided for the third year.
