07 March 2023
The Society will take some forms of unearned income into account when assessing affordability. We will not progress an application where state benefits make up the majority of income (excluding pension income).
We will consider the following when assessing state benefit income.
- The type of income and the reason for a customer is receiving the state benefit.
- The length of time that this income is likely to be paid.
- How reliant upon that income we are to demonstrate affordability?
- Will the application impact the benefit? e.g., a single parent now purchasing a home with a new partner.
See below benefits that the Society may consider:
| Pension income | May be included at 100% |
| Child benefit for children age under 12 (Not to be included if either one or both applicants earn over £60,000 per annum) | May be included at 100% |
| Adoption allowance for children age under 12 | May be included at 100% |
| Guardian’s allowance for children age under 12 | May be included at 100% |
| Disability Living allowance for children age under 12 | May be included at 100% |
| Personal independent payment | May be included at 50% |
| Carer’s allowance | May be included at 50% |
| Industrial injuries disablement benefit | May be included at 50% |
| Constant attendance allowance | May be included at 50% |
| Guaranteed income payment for forces | May be included at 50% |
| Other state benefits | Will not be included |
When benefit income is being included in affordability calculations it can be evidenced by 3 months recent bank statements.