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Employment & Income - Lending Criteria





Employment

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. Please refer to Income Documents for detail on what verification documents are required and note that we may require additional documents in some circumstances.




Income Documents

For all applications, copies of the following documentation is required:

Employed applicants

  • 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 the previous 3 years’ P60s.
  • 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.)

Self-employed customers:

In some cases we may accept applications when some of the Income is from Self Employment. You should contact your BDM or our Help desk 0345 6070213 for further information in advance of the application.

If proceeding to application you should provide the following financial information:

  • 3 years’ most recent financial accounts
  • Most recent year’s HMRC Tax Calculation (SA302) and Tax Year Overview
  • If their core transactional personal account is not held with Danske Bank they should provide their last 3 month’s personal transactional account statements

If financial accounts are unavailable alternative sources of income verification may be acceptable, please contact us for guidance.

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.

Self employed applicants will be required to provide 3 years history (this refers to the last 3 years financial accounts for the business). Please refer to the Self Employed customers in the acceptable income section for further information.




Maximum Loan Term

Maximum term available is 35 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.

This concession does not, however, allow the maximum loan term of 35 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 50%). The appropriate discount will be applied automatically via Danske Home when keying the application.




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.




Self Certification

We do not allow self certification.




Self-Employed Customers

In some cases we may accept applications when some of the Income is from Self Employment. You should contact your BDM or our Help desk 0345 6070213 for further information in advance of the application. Please refer to Income Documents for details on what verification documents are required and note that we may require additional documents in some circumstances.




State Benefits

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%.