INCOME VERIFICATIONS. The Seller requires appropriate income evidence for every application at the time of the risk decision. In relation to employed applicants, the Seller requires as a minimum by way of income verification: one monthly or two consecutive fortnightly (dated no more than two months before application) or four consecutive weeks' (dated no more than five weeks before application) payslips. In relation to self-employed applicants (other than those applicants who are deemed to be self- employed by virtue of being directors of a limited company with a shareholding of 20% or more in that company, in relation to which additional income verification is required), the Seller requires as a minimum by way of income verification: (i) for loans with an LTV of up to 90 per cent. either: (a) latest two years' signed accounts (year end no more than 18 months from application) or (b) self assessment tax calculation forms for the latest two years or (c) an accountant's certificate from a suitably qualified accountant; and (ii) for loans with an LTV above 90 per cent., 3 years’ income figures from self assessment tax calculation forms and/or full trading accounts.
INCOME VERIFICATIONS. 10. Utility allowances;
INCOME VERIFICATIONS. The Seller accepts the following original documents by way of income verification in relation to "employed" applicants: existing Borrowers and new Borrowers with an LTV less than or equal to 75 per cent.: latest monthly or four weeks' payslips or latest year's accounts where self-employed; new Borrowers with an LTV greater than 75 per cent.: latest three months' payslips or last two years' accounts if self employed; Loans over £500,000: latest three months' payslips or last two years' accounts if self-employed. The Previous Seller included in its calculations, in relation to employed applicants, the employee's basic salary, pension or state support benefits (payable by the Department of Work and Pensions or HM Revenue and Customs) where guaranteed for life together with 100 per cent. of the basic salary from a second job in the same line of occupation, contractual employer's allowances (e.g. mortgage subsidy, large town allowance, etc.), child benefit and working/family tax credits. The Previous Seller accepted 50 per cent. of any income, that whilst not guaranteed or permanent, is nonetheless regular and sustainable, and included: regular overtime, bonuses and commissions; maintenance; taxable tips; rental income; and where the applicant has a track record of the income being received. The figures used as allowable income for self- employed applicants are as follows: LTV less than or equal to 75 per cent. and where the Loan is less than or equal to £500,000: latest year's net profit attributable to the applicant; existing Borrowers regardless of LTV or Loan amount: latest year's net profit attributable to the applicant; and LTV above 75 per cent. or where the Loan is greater than £500,000: an average of the last two years' net profit attributable to the applicant. One year's full accounts and a projection verified by a qualified accountant sufficing for the second year may be acceptable where the applicant has been self-employed for less than two years. Draft accounts are acceptable only if verified by a qualified accountant and the applicant has been self-employed for over two years. A maximum of four applicants may apply for a Loan and a maximum of two incomes can be used. Positive proof of the Borrower's identity and address is established in line with money laundering regulations. Currently, the Seller does not accept third party guarantees. For low risk applications, income is verified at the point of sale and a percentage is audited by a...
