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 or Apprenticeships.

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:

Documents for PAYE customers:

• 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).
• Paid by direct transfer to bank account – We require payslips covering the latest month at time of application.
• Paid by cash/cheque – We require payslips covering the latest 3 months at time of application, most recent P60 or March payslip and evidence of permanent employment (copy of contract of employment).
• Fixed Term Contracts (FTC) or Apprenticeship - Where an applicant is employed on a FTC basis on a PAYE basis, we require payslips covering the latest month, 2 years P60's which should confirm that the customer has been employed in the same industry / profession for those two years and a copy of the current contract of employment which must have a minimum of 6 months remaining.
• Bonus (monthly) / Overtime / Commission / Tips / Tronc – We require payslips covering the latest 3 months at time of application and most recent P60 or March payslip.
• Bonus (quarterly) – We require payslips covering the latest month and payslips showing payment of the bonus for the most recent 4 quarters and the most recent P60 or March payslip.
• Bonus (half yearly or annually) – We require payslips covering the latest month and payslips showing payment of the bonus for each of the previous three years if received annually, or each of the previous two years if received half yearly and also the most recent P60 or March payslip.
• If current employment term is less than 6 months or the means of wage/salary payment is cash/cheque – We require evidence of permanent employment, such as 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.

Documents for Self-Employed customers (including Directors of Limited companies):

• We require the two most recent Tax Year End’s Tax Calculations (SA302).
• Also the corresponding most recent two year’s Tax Year Overviews.
• Tax Calculations/ SA302 and Tax Year Overviews must not be greater than 18 months old.
• 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 your customer has been 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

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. If you have any queries or have a self-employed case you would like to discuss, please contact your BDM.

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 6 months we will require a copy of their contract of employment to confirm that the applicant is in a permanent role.

For Self-employed applicants please refer to the Self-Employed section for further information.

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 until retirement and the term of the mortgage does not take the applicant more than 5 years beyond stated retirement age or 70 whichever is lower, we will only require evidence that they are currently making pension contributions. 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 payslips showing payment of the bonus, for the previous three years if received annually, or the previous two years if received half yearly, or the most recent 4 quarters if 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.

Retirement

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 until retirement and the term of the mortgage does not take the applicant more than 5 years beyond stated retirement age or 70 whichever is lower, we will only require evidence that they are currently making pension contributions. 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.

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%.