Disability Living Allowance and Personal Independence Payment

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On Monday 17th January we are increasing the percentage of Disability Living Allowance (DLA) and Personal Independence Payment (PIP) incomes used in our affordability calculation from 60% to 100%.

These incomes should continue to be keyed under the relevant options under 'other income'.

Where either of these incomes are keyed we require you to ask the customer how much of that income they use for related costs and key these costs as a credit commitment i.e. if the customer has extra care or mobility costs these should be declared as a commitment. Please select 'other' as the commitment type. If there are no costs then no commitment needs to be keyed.

The changes apply to applications started from Monday 17th January. A Decision in Principle (DIP) keyed on Monday 17th January will be subject to these new rules. Applications started before Monday 17th January, even if at DIP stage, will remain on the previous rules even if a full application is submitted after Monday 17 January.

The website affordability calculator will be updated.

Our tracker rate mortgages are linked to Bank of England bank rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England website at www.bankofengland.co.uk.

For independent information on mortgages, visit the website 'Money Advice Service'.

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