This enhancement has been introduced in recognition of the increased flexibility needed when assessing applicants’ differing circumstances.
The bank will assess each borrower’s individual financial circumstances, and where affordability can be demonstrated by the customer on application, enhanced income multiples will now be offered.
The table below outlines the levels that Scottish Widows Bank will consider where affordability can be demonstrated.
Flexible Mortgage
Gross Income - Below £30,000
Income multiple
Single - 3.5
Joint - 2.75
£30k-£50k
Single - 4
Joint - 3.5
£50k+
Single - 4.5
Joint - 4
Professionals
Below £30,000
Single - 4
Joint - 3
£30k-£50k
Single - 4.5
Joint - 3.5
£50k+
Single - 5
Joint - 4
Graeme Hartop, managing director of Scottish Widows Bank, said: "We have undertaken a review of our income multiples in response to feedback from IFAs which told us that while they like affordability assessment they are sometimes unsure how these calculations are carried out. By outlining the enhanced multipliers, we hope to give IFAs clear guidance they can work to and help them to prepare their client’s assessment for a Scottish Widows Bank mortgage."
