The Mortgage Lender has unveiled a raft of residential affordability improvements that will see 100 per cent of shift allowance, overtime, bonus and commission accepted as income.

In addition, some benefits will also be considered when assessing affordability where applicants meet normal employment criteria.

The changes, which are available to the whole of market, mean that more real life income can be considered and demonstrates the company’s pragmatic approach to underwriting mortgage applications.

They include:

• Child Tax Credit and Working Tax Credit (or Universal Credit equivalent) will be accepted as a source of income if the applicant also meets employment criteria.
• 100 per cent of Child Benefit is acceptable where the children are aged 13 and under.
• 100 per cent of shift allowance is acceptable
• 100 per cent of over time, bonus or commission is acceptable

The Mortgage Lender deputy chief executive Peter Beaumont said: “In a competitive market it’s imperative we’re providing our distribution partners with real life lending options that meet the needs of their customers and offer borrowing at competitive prices.

“The changes to residential affordability reflect the reality of the complicated circumstances borrowers are presenting when they apply for a mortgage while ensuring lending decisions remain prudent and affordable.”