Evidence requirements guide November 2016

Transcription

1 INTERMEDIARIES & INVESTMENT PROFESSIONALS ONLY: NOT FOR PUBLIC DISTRIBUTION Page1of6 Evidece requiremets guide November 2016 The followig tables show our stadard documetatio requiremets for evidece. Sectio 1 Employed Icome Page 2 Sectio 2 Bous, commissio or overtime Page 3 Sectio 3 Self-employed Icome Page 3 Sectio 4 Pesio Icome Page 4 Sectio 5 Beefits Icome Page 4 Sectio 6 Other Icome Types Page 5 Sectio 7 Proof of Deposit Page 5 Sectio 8 Iterest oly mortgages acceptable repaymet vehicles Page 6 Please make sure proof of icome is obtaied for each applicat prior to the date of the mortgage applicatio ad that it meets our icome evidece requiremets. All icome evidece must be retaied for a miimum of two years from completio. Please also refer to the guides for our requiremets for payslips, bak statemets ad accoutat s certificate o

2 Mortgages Iformatio Page 2 of 6 Sectio 1 Employed Icome We do ot accept a employer s referece as proof of icome. Where payslips are provided, they caot be hadwritte or ameded i ay way. Primary icome (100%) Permaet cotract of employmet (basic salary) Latest mothly payslip (o older tha two moths from applicatio date) or if paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date). Fixed term cotracts Latest mothly payslip (o older tha two moths from applicatio date) or if paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date); ad Evidece of cotiuous employmet for the last 12 moths; ad either Cofirmatio from employer of log-term employmet arragemet; or Writte cofirmatio from a reputable agecy of secure further positios. Employmet i your ow family s busiess (if the applicats hold less tha 20% shareholdig i the Compay) Short term reewable cotracts If the applicats hold a 20% or more shareholdig i the Compay please see Sectio 3 Self-employed icome for evidece requiremets. Latest mothly payslip (o older tha two moths from applicatio date) supported by YTD figures. If paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date); ad Bak statemets evidecig latest three moths salary credits. Latest mothly payslip (o older tha two moths from applicatio date) or if paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date); ad Cotract from employer; ad either Cofirmatio of earlier cotracts; or The arragemet is cofirmed as ogoig by the employer/agecy. Icome durig paretal leave Latest payslip; ad Last payslip prior to paretal/materity leave showig the full salary; ad Alterative source of fuds to support paymets ad livig costs if icome durig paretal/materity leave is isufficiet (e.g. savigs). Where a applicat iteds to retur to work o the same terms as before the start of paretal/materity leave, we will eed cofirmatio of this i the Geeral Notes sectio o Itroducer Iteret. Where a applicat (or either applicat if joit applicatio) will be chagig their workig patter followig paretal/materity leave, we will eed a letter from the applicat s employer cofirmig their retur to work coditios. Please make sure that you have icluded ay aticipated childcare costs i o-regular expediture. Where there will be o childcare costs please provide a explaatio icludig details of alterative arragemets i the Geeral Notes sectio o Itroducer Iteret. Other primary icome (100%) Lodo weightig Large tow allowace Permaet shift allowace Employer s mortgage subsidy Latest mothly payslip (o older tha two moths from applicatio date) supported by YTD figures. If paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date). Housig allowace Car allowace Secod job where this is ogoig ad sustaiable Secodary icome (50%) Discretioary mortgage subsidies ad housig allowace Latest mothly payslip (o older tha two moths from applicatio date) or if paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date). Restricted term subsidies may be cosidered as a secodary icome subject to a miimum term of five years: Cotract of employmet; ad Latest mothly payslip (o older tha two moths from applicatio date) or if paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date). Cofirm i the geeral otes withi the Regulatio sectio i the Full Mortgage Applicatio (FMA) o Itroducer Iteret that you are satisfied that the mortgage will remai affordable whe the allowace eds.

3 Mortgages Iformatio Page 3 of 6 Sectio 2 Bous, commissio or overtime Primary icome (100%) Bous, commissio or overtime To use as primary icome, amouts must be regular ad cosistet ad ot a short term tred. We ll use the lowest mothly paymet from the last three moths payslips x12. If paid mothly, latest three moths payslips required. If paid weekly, four weeks cosecutive payslips required, alog with oe payslip from each of the previous two moths idetifyig the bous/commissios/overtime paymet. If there is a sigificat differece i the amouts show o the payslips ad the year to date figure, please record i the Geeral otes sectio of Itroducer Iteret. Secodary icome (50%) Mothly bous, commissio or overtime Where amouts are regular but icosistet. We ll use a average from the last three moths payslips x12 If paid mothly, latest three moths payslips required. If paid weekly, four weeks cosecutive payslips required, alog with oe payslip from each of the previous two moths idetifyig the bous/commissios/overtime paymet. Aual bous or commissio Bous, commissio or overtime paid less frequetly tha mothly e.g. quarterly Most recet payslip showig bous or commissio paymet; ad Previous payslip or P60 evidecig the bous or commissio paid i the previous tax year. Three payslips showig the last three bous/commissio/overtime paymets received. Sectio 3 Self-employed Icome Primary icome (100%) Employed icome (salary) for Director of a limited compay (where there is a 20% or more shareholdig i a compay the customer must be treated as self employed) Net profit of a sole trader/partership (icludig limited liability parterships) Other primary icome (100%) Divideds for Directors (20% or more shareholdig i a compay); icludes Alphabet shares Accoutat s certificate (template o or Self Assessmet Tax Calculatio forms (SA302) plus Tax Year Overview (TYO) coverig 24 tradig moths. (SA302s ad TYOs ca be requested from the HMRC or via a olie HMRC accout). For all self-employed icome proofs the most recet year-ed must ot be more tha 18 moths before the date of the applicatio. Loas over 90% LTV Sole trader/partership (icludig limited liability parterships): three years SA302s plus a Tax Year Overview for each correspodig tax year or accouts providig three years tradig figures siged by a suitably qualified accoutat. Director of a limited compay: three years SA302s plus a Tax Year Overview for each correspodig tax year ad siged accouts providig three years tradig figures. We reserve the right to request accouts where ecessary. These must be fial accouts ad siged by a suitably qualified accoutat. Please refer to the Accoutat s Certificate for acceptable accoutat s qualificatios. Employed i your ow family s busiess If the applicats hold a 20% or more shareholdig i the Compay treat as self-employed. Latest mothly payslip (o older tha two moths from applicatio date) supported by YTD figures. If paid more frequetly tha mothly, last four weeks payslips required (o older tha five weeks from applicatio date); ad Bak statemets evidecig latest three moths salary credits. Where there are uexplaied dowward treds or sharp icreases i the most recet year s tradig figures, please provide additioal iformatio to explai why.

4 Mortgages Iformatio Page4of6 Sectio 4 Pesio Icome Primary icome (100%) Pesios ad auities (private/compay) (curretly receivig) Pesio payslip; or The latest bak statemet evidecig the paymet from the pesio compay, together with either: a) Pesio statemet, or b) Auity/Pesio letter, or c) P60 (if ot clear the P60 is related to pesio/auity the the coverig letter must be provided from the pesio/auity provider) Pesio statemets ad auity letters may ot be hadwritte or ameded ad must: show applicat s ame ad address, which must match that stated o the applicatio form; show pesio/auity compay s ame, address, telephoe umber ad compay s registratio umber (if Limited) ad be o headed paper or show compay stamp; show pay dates; cover at least oe moth (four cosecutive weeks if paid weekly); show gross icome; show et pay. Pesio statemets (private/compay) must: show regularity of paymet; ot be older tha 12 moths. Auity letters must: show amout payable mothly; ot be older tha 12 moths. Please ote if a pesio is paid less frequetly tha mothly, it will oly be cosidered as secodary icome. State Pesio DWP (Pesio service) state pesio letter issued withi the last 12 moths; or Latest bak statemet idetifyig paymet from DWP. Sectio 5 Beefits Icome Other primary icome (100%) Workig Tax Credit Child Tax Credit Child Beefit Secodary icome (50%) State beefits (DWP/HMRC) cofirmed as idefiite HMRC tax credit award letter or DWP child beefit letter (all pages); or Bak statemets evidecig the last three moths tax credits (most recet statemet to be o more tha five weeks from applicatio date) for Tax Credits or for Child Beefit the most recet bak statemet/certified photocopy of buildig society or NS&I passbook evidecig the paymet from the DWP source; ad For Child Beefit ad Child Tax Credit, cofirm i the geeral otes withi the Regulatio sectio i the FMA o Itroducer Iteret that you have checked that the mortgage will remai affordable whe the beefits ed. DWP/HMRC letter cofirmig the amout ad beefit type.

5 Mortgages Iformatio Page 5 of 6 Sectio 6 Other Icome Types Secodary icome (50%) Ivestmet icome (excludig retal icome) Retal icome from properties already let Allowable aual retal icome as calculated i Itroducer Iteret or our affordability calculator Maiteace paymets Fosterig icome Evidece of a regular icome from this source showig a cosistet or improvig retur: Bak statemets evidecig latest three moths icome; ad Evidece of the source, e.g. portfolio of stocks ad shares; ad Cofirm i the geeral otes withi the Regulatio sectio i the FMA o Itroducer Iteret that the applicats have cofirmed their itetio to retai the capital for ivestmet purposes. As ivestmet icome is complex ad differet for every case it is advised that you speak to your sales team about what evidece of the source is required. Bak statemets evidecig latest three moths retal icome; or Two years self-employed accouts (if applicable). Bak statemets evidecig latest three moths maiteace paymets (most recet statemet to be o more tha five weeks from applicatio date); ad Cofirm i the geeral otes withi the Regulatio sectio i the FMA o Itroducer Iteret that you are satisfied that the mortgage will remai affordable whe the paymets ed. Cofirmatio from authority that it has bee ogoig ad how log it is likely to cotiue; ad Details of future placemets (where relevat); ad either Bak statemets evidecig latest three moths icome; or Self-employed accouts (if applicable). Sectio 7 Proof of Deposit Whe proof of deposit is required this ca be: Copy of savigs book or bak statemet showig the full amout of the deposit. Equity cofirmatio of the sale price ad balace outstadig. Capital raised from aother property copy of the mortgage offer letter. Edowmet/Ivestmet Policy Maturity letter showig maturity value. Letter siged by the perso makig the gift cofirmig the amout ad o what terms. This list is ot exhaustive ad other methods may be acceptable.

6 Mortgages Iformatio Page 6 of 6 Sectio 8 Iterest oly mortgages acceptable repaymet vehicles Sale of the mortgage property Evidece Required Sale of the mortgaged property Miimum 150,000 equity i the property. Cofirmatio i Itroducer Iteret of customer s future plas followig the sale of this residetial mortgaged property ad that they will have sufficiet equity/fuds to carry out those future plas. Where Purchase a ew residetial property is stated as the future pla ad the remaiig loa term is less tha te years, additioal iformatio is required o property locatio, type ad size. Complete the Iterest Oly - Sale of Mortgaged Property Customer Declaratio ad upload via MATS immediately followig submissio of the mortgage applicatio. Evidece of this iformatio should be retaied o file. Please refer to our Iterest oly repaymet vehicle guide o for full details. We udertake regular checks to assess the plausibility of your cliet s repaymet strategy ad we may request further iformatio or evidece. Ivestmet Vehicle Value based o Evidece Required Mortgage-related edowmet or mortgage-related ISA Ivestmet portfolio: shares, uit trusts, Ope Eded Ivestmet Compaies (OEICs), Ivestmet Bod Mid-poit projectio at maturity Curret cash value Latest aual statemet from the life compay showig the projected value (must ot be more tha 15 moths old). Use the media/middle figure for mortgage-related edowmets or mortgage-related ISA at the term ed, as detailed o the latest statemet. Latest statemet issued by the admiisterig compay (must ot be more tha 12 moths old) Must show curret ivestmet value from last statemet. Use 100% of the curret value oly, with o growth projectios or added sums, eve where future mothly ivestmets are beig factored ito expediture. All evidece must be: Provided by MATS documet upload whe the mortgage applicatio is submitted. Retaied o file for a miimum of two years from the date of applicatio. We udertake regular checks to assess the plausibility of your cliet s repaymet strategy ad we may request further iformatio or evidece. Ivestmet vehicle acceptable proof Ivestmets may be held i a ISA but this is ot a requiremet. Cash ISAs are ot acceptable. Must have bee held for a miimum of 12 moths ad cover the iterest oly amout. Must be admiistered by a FCA regulated fiacial services firm with a authorised or EEA authorised status. All owers of the repaymet vehicle must match the ames show o the applicatio. The applicats must ot have reduced their holdig sice the last statemet. We do ot accept ay other repaymet vehicle: For example pesios, sale of other properties (icludig BTLs), bouses, overpaymets, cash savigs (icludig cash ISA) or iheritace. MORT 0957 NOV 16 HT Aimed at Itermediaries ad Ivestmet Professioals oly. Not for public distributio. Satader for Itermediaries is a brad of Satader UK plc ad is ot a regulated compay. Satader UK plc. Registered Office: 2 Trito Square, Reget s Place, Lodo, NW1 3AN, Uited Kigdom. Registered Number Registered i Eglad ad Wales. Telephoe Calls may be recorded or moitored. Authorised by the Prudetial Regulatio Authority ad regulated by the Fiacial Coduct Authority ad the Prudetial Regulatio Authority. Our Fiacial Services Register umber is Satader ad the flame logo are registered trademarks.