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.

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.

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, this includes if the customer is on a Fixed Term Contract. Where income varies, the applicant is paid in CASH/CHEQUE, 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 one payslip covering the most recent month (if paid monthly, four if weekly), 2 years P60's and copy of the Fixed Term Contract which should confirm remaining term of no less than 6 months.
• Overtime / Commission / Bonus / Permanent Contracted Income - Where applicants rely on this type of income to service repayments we will require the most recent 3 months payslips. If the additional income payments are not supported by the payslips we may require additional verifications, such as a P60, further payslips or a letter from the customers employer. 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.
• 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 (including Directors of Limited companies) 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.

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 (we currently consider 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.

Self Certification

We do not allow self certification.

Self-Employed Customers

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.

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%.