Common use of Income and Employment Details Clause in Contracts

Income and Employment Details. 6.1 In the case of an investment home property, the Seller will seek to use the rental income generated from the property to be mortgaged within an affordability calculation. The normal minimum rental value will be 130 per cent. or in certain circumstances 125 per cent. of the associated mortgage payment when calculated on an Interest-only basis at either the product rate or reference rate. The reference rate is based upon long term loan rates and is reviewed by the Seller's credit committee on a quarterly basis. Its use removes anomalies in the affordability calculation which may be caused by, for example, specialist product rates, discounted rates, fixed rates etc.

Income and Employment Details. 6.1 In the case of an investment home property, the Seller will seek to use the rental income generated from the property to be mortgaged within an affordability calculation. The normal minimum rental value will be 130 per cent. , or in certain circumstances 125 per cent. , of the associated mortgage payment when calculated on an Interest-interest only basis at either the product rate or reference rate. The reference rate is based upon long term loan rates and is reviewed by the Seller's ’s credit committee on a quarterly basis. Its use removes anomalies in the affordability calculation which may be caused by, for example, specialist product rates, discounted rates, fixed rates etc.