The past year has been challenging for everyone but has impacted some more so than others. If you found your income impacted by COVID, it is hard to know where to begin with getting back on track to get a mortgage.
A good place to start is by discussing our minimum income requirements.
For those buying alone, our minimum income is £18,000 per year.
For joint applications, our minimum income is £20,000 per year. One of the purchasers must earn at least £15,000 per year. This is not including Income Boosters.
If you were or currently are on furlough full time, we are unable to take this income into account. This is the same for SEISS grants.
However, if you are on part-time furlough and have a return date scheduled, we would ask for a letter from your employer to confirm this. We would also need to see your first payslip once you had returned back to work.
If you are due to start a new role shortly, we would ask to see your employment contract and your first month's payslip once you are in the role. You can still start an application with us and use your new income if you have signed your contract.
We usually request to see the latest 2 years accounts and tax overviews for self-employed applicants. However, if you found yourself out of work due to COVID we are able to accept one year's accounts and tax documents provided this is supported by another employed applicant (homeowner, not Income Booster) on the mortgage.
We are able to take some benefit income into account, but it is worth noting this is not able to make up more than 50% of an applicants total income.
You can find more information here on the Benefit income we can accept.
Due to COVID, many companies saw an uptake in payment holidays. For any secured loans, such as mortgages, provided normal payments have now been resumed we would be able to accept this.
However, if you took any payment holidays on unsecured lending in the last six months, we wouldn't be able to proceed right now.
If you are unsure on whether you would be able to apply for a Generation Home mortgage, you can reach out to us on Live chat or via email. You can do so by pressing the icon on the bottom right of our website.