We will consider applicants who are employed on Permanent Contracts of employment. We may also consider applicants who are employed on Fixed Term or Agency Contracts.
We will also accept income from Self-employed applicants.
Please refer to Income Documents for detail on what verification documents are required and note that we may require additional documents in some circumstances.
For all applications, copies of the following documentation is required:
- Payslips - Where an applicant is employed and income is regular and stable we will only require the most recent 1 month’s payslips. Where income varies, the applicant is paid in CASH/CHEQUE, is employed on a Fixed Term Contract, or where income from overtime/commission/bonus, or permanent contracted allowances feature, we will require the most recent 3 months' payslips.
- Fixed Term Contracts (FTC) - Where an applicant is employed on a rolling FTC basis, we require 1 month payslip, 2 years P60's and copy of the Fixed Term Contract with more than 6 months of term remaining.
- Overtime/Commission/Bonus/Permanent Contracted Income - Where applicants rely on this type of income to service repayments we will require the most recent P60 to confirm Gross Income and most recent payslip to confirm Basic Income. If the additional income payments are not supported by the payslips and P60 we may require additional verifications, such as further payslips or a letter from the customers employer.
- P60 – Customers paid in CASH/CHEQUE must provide their most recent P60.
- In current Employment less than 12 months - We will require a copy of the contract of employment. In some cases we may also accept a letter on headed paper from employer. In both instances the document must confirm that the applicant is employed in a permanent capacity and confirm their basic gross annual salary and/or contracted hours and rate per hour.
- Bank Statements - We will require the most recent 3 months’ bank statements for the applicant’s main transactional bank account (if the applicant’s main transactional bank account is not with Danske Bank.)
If proceeding to application you should provide the following financial information:
- 2 years SA302s
- 2 years tax year overviews
- 3 months personal bank statements
If your customer is Self Employed for less than 2 years but they were previously employed in the same profession we require:
- 1 years SA302
- 1 years Tax Year Overview
- Previous tax year’s P60
- 3 months personal bank statements
If you have any queries or have a self-employed case you would like to discuss, please contact your BDM.
DIRECTORS OF LIMITED COMPANIES
- We will require the most recent 3 months’ payslips and most recent P60
- If their core transactional personal account is not held with Danske Bank they should provide their last 3 months’ personal transactional account statements
- If the director is also a shareholder we will require their last Tax Calculation (SA302) and Tax Year Overview
- If the director is also a shareholder we will require copies of the last 3 years’ financial accounts for the limited company
Please note that income tax documentation should be no greater than 18 months old, and in some instances additional documentation may be required. For further guidance on income accepted and documents required, please contact us.
Income in Foreign Currency
We do not currently accept applications from Intermediaries where an applicant’s income, utilised for affordability, is not in Sterling.
Length of Employment
If applicant is in employment for less than 12 months we will require a copy of their contract of employment to confirm that the applicant is in a permanent role and applicant must have received at least one payslip.
Max Loan Term
Maximum term available is 40 years or advised retirement age, whichever is sooner. Retirement age is based on the lower of that advised by the applicant, or age 70. Loans may be extended beyond retirement age provided that verified post retirement income meets affordability criteria rules.
If the customer has 11 years or more to retirement, or if the term of the mortgage does not take the applicant more than 5 years beyond stated retirement age we will only require evidence that they are paying into a pension. Otherwise pension projections are needed.
This concession does not, however, allow the maximum loan term of 40 years to be exceeded, and the mortgage must be repaid by the applicant’s 75th birthday.
For joint applications, advised retirement (being the lower of the applicant advised age or age 70) applies to:-
- Main income earner if serviceability is based on this income alone, or
- Both applicants if serviceability is dependent upon both incomes.
Overtime / Commission / Bonus
We may consider additional types of Income such as Overtime, Commission and bonus income subject to a level of discount (currently 60%). The appropriate discount will be applied automatically via Danske Home when keying the application. Commission /overtime is calculated based on average of past 3 months. For Bonus income we require the payslip(s) showing payment of the bonus, for the previous three years if received annually, or the previous two years, if received half yearly or quarterly.
Rental Property Income
Rental Property Income will be considered subject to the provision of evidence of income from the applicant. Confirmation will also be required that tax affairs are up to date.
We do not allow self certification.
We accept applications from self-employed customers. Please refer to Income Documents for details on what verification documents are required and note that we may require additional documents in some circumstances.
We can accept up to 100% of Child Benefit Income received for Children 12 years and under.
All other state benefits would be subject to a discount of 75%.