COVID -19 update from Newcastle Intermediaries
Latest Update: 12th August 2020
To ensure that we continue to lend responsibly during the current pandemic we have made several changes to our lending policy These changes take immediate effect from 11th August for all new applications received from this date.
Applicants who are currently furloughed
Given the amendments to the furlough scheme and the reduction in government support taking effect from 1st August we will now require written confirmation from the applicant's employer that they will be returning to work by 31st October and must confirm the salary the applicant will return on. This is in addition to our current requirements.
Additional secondary income
For applicants in receipt of any bonus, commission or overtime we will be reducing the percentage we take for affordability to 25%. We will still require evidence of track record of earnings to support this.
Fixed Term Contracts
In addition to current requirements, any applicant currently employed via a fixed term contract whose contract will cease within the next 6 months must be able to provide evidence that either the existing contract will be extended beyond expiry or that they have a new contract to move to. In both instances we will require confirmation of new salary and terms.
Zero Hours Contracts
We will not accept any applicant on a zero hours contract.
New Build Properties
Our maximum LTV for any new build house is now 80%. For flats, this is now 75%.
Buy to Let loans where a payment deferral has been taken
If an applicant has taken a mortgage payment deferral we must understand the reasons for doing so and be provided with evidence that the ability to service the loan remains unaffected.
Our Team of BDMs will be more than happy to help with any questions or queries you may have. To find your local BDM please visit www.newcastleis.co.uk/MeetTheBDMTeam
Supporting our existing borrowers
We are committed to supporting customers and landlords who experience difficulty with mortgage payments as a result of coronavirus. This includes providing payment holidays up to six months.
For more information on payment holidays and how to apply, please visit our website at www.newcastle.co.uk/mortgages/existing-customers/payment-difficulties/
If your clients do need to speak to us then ask them to call our helpline number on 0345 702 3083. Lines are open from 9am to 5pm Monday to Friday.