Where an applicant is currently on, or is to commence, a known period of reduced income, the overall lending assessment and any affordability requirements will be based on the “return to work” income details.
- In order to verify “return to work” income, an employer’s letter, addressed to the Bank, should be obtained confirming when the applicant is returning to work, full income details and working hours
- Where an employer’s confirmation is not available further documentation should be obtained such as payslips/P60s/HMRC Annual Tax Year Overview together with information regarding length and nature of employment, proposed number of hours to be worked upon return, savings to subsidise commitments/lifestyle whilst on period of leave. Further information may be required in order to fully assess based on individual circumstances
Key consideration is to ensure that the required income level can be maintained during any period of leave and continues to be met on a sustainable basis following return to work especially where reduced hours are to apply.