Pepper Money has relaxed the affordability criteria for second-payment mortgages to take greater account of borrowers’ variable income streams.
The lender now accepts up to 100% of bonuses, overtime, commissions and foster care income.
In these cases, borrowers must be able to demonstrate that the bonus or overtime income is consistent and sustainable.
With almost 70,000 children living in more than 53,000 foster homes across the UK, Pepper will also accept up to 100% of foster care income on the same basis.
Second Charge Sales Director Ryan McGrath says: “Our living and working habits have changed in recent years and as a leading specialist and second charge mortgage provider, Pepper has a reputation for helping more customers achieve their goals by taking a pragmatic, hands-on approach. to assess their circumstances.
“There are a large number of professions where variable incomes such as bonuses, overtime and commissions are inherent to the position.
“Additionally, the value and challenges that foster carers face have been exasperated in recent years.
“We are keen to support all these customers in overcoming potential affordability hurdles.
“That’s why it’s important that we can consider variable income as part of our affordability calculation.
“This is particularly useful for customers looking to raise money to consolidate unsecured debts and control their monthly expenses in the current climate.”