Will we decline a quarter of IP applicants on their income source?
What is complex? That includes some on zero hours contracts and many self-employed people. For people on zero hours contracts the acceptance rate was worst of all: 46% would have a mortgage application declined.
That would severely penalise a household where an application was for a couple, one of whom is on a zero hours contract, not uncommon for someone who is on call – think of a filling in teacher.
We believe that these people have all passed a basic income-adequacy assessment – meaning that the mortgage adviser, or frontline banking staff member, who was processing the application believed that in volume alone the level of income was sufficient to service the debt.
The declines will arise from some other form of assessment criteria.
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