Residential policy
All credit commitments should be included within the application.
Overdraft balances, and any buy now pay later which is reported as a ‘Deferred Payment Credit’ on the credit report and requires repayment in no more than six instalments, don’t impact our affordability assessment. Please don’t include these types of commitment when running an affordability calculation or AIP, but please include their details in the liabilities section of the full mortgage application.
The same applies to any debts being consolidated with the mortgage, so please include the details of the debts within the liabilities section of the application but do not include their monthly payments as expenditure.
If there are debts planned to be repaid on or before the mortgage completes other than those being consolidated, or any financial commitments which are due to end within the next 6 months and aren’t going to be replaced, we may be able to exclude these from our affordability assessment, but please contact us before applying to see how we can help.