Income & Evidence

Minimum income

£15,000.

Minimum employment history

12 months.

Maximum Income Multiple (Loan to Income)

Up to a maximum multiple 4.5x single or joint incomes. For RL5 products this is limited to a maximum of 4x joint incomes. For large loans > £1m the maximum income multiple is up to 5x for Capital and Interest (4.5x for Interest Only or Part & Part), based on applicants’ annual gross income, on capital and interest repayment method. Large loans income multiple is applicable for RL0 and RL1 only.

Bank statements

Personal bank statements may be requested at our discretion. These will continue to be a standard requirement for applications from Contractors or where any benefits income is being used in the affordability assessment.

Employed

Must be in current role for 3 months at the date of application where an applicant should have satisfied any probationary period. Additional evidence may be required including confirmation that any probationary period has been satisfied.

Evidenced by 2 months’ payslips. Additional statements or income evidence may be required.

Second job, Overtime, Employment Bonus, and Commission, at 100%, except for any loan > £1m where a maximum of 75% of last 3 months average is considered with evidence of sustainability. Car allowance and regional allowance at 100%. Shift Allowance at 50% can be included if paid weekly, monthly or quarterly. Loans over £1m require 2 years income evidence to support sustainability, in the form of last 2 years P60’s.

Additional payslips or alternative income evidence may be required to justify the level of income component claimed. For any overtime component the monthly level of income to be evidenced in the payslips provided. The year to date summary should support the annualised figure declared.

Self employed

Minimum trading time 12 months.

Latest 3 months’ business bank statements. Additional statements may be required.

Evidenced using:

Most recent year’s certified accounts OR
Tax Calculation (SA302) with the corresponding Tax Year Overview

Loans over £1m, 2 years self-employed income will be required evidencing a consistency in come
earned over the 2 year period.

TML will not accept an accountant’s certificate / reference.

If certified accounts are provided these must be completed and returned from a qualified accountant with acceptable accountant qualifications: ACA/FCA, ACCA/FCCA, ACCIMA/FCIMA, CIPFA, ACMA. Accountant must hold a current practising certificate.

Trading 12-24 months:

Maximum 90% LTV
Most recent year’s evidence required
Trading > 24 months:

Maximum 90% LTV
Most recent 2 years’ evidence required
TML may consider the use of past trading accounts relating to pre-COVID levels by using accounts for 2019/2020 if the latest 3 months bank statements are in line with past trading performance.

This will be subject to the following:
• Available on RL0 to RL3 products only;
• Minimum 2 years full accounts;
• Maximum income allowed equal to 2019/20;
• Completion of additional disclosure form for any applicants impacted by COVID.

Please speak to your BDM for further information prior to submitting an application.

Contractors

Income calculation of up to a maximum of weekly rate x 48.

Existing contractors: Must have been contracting for a minimum of 12 months at the point of application.

Current contract must be for a minimum of 6 months. Payslips and/or invoices supporting the
contract and 2 months personal bank statements are required.

For any contract with a term less than 3 months remaining, confirmation to be provided from the applicants’ employer that their contract will be renewed and TML is satisfied with the applicant’s contracting history, if requested.

Renewal of contracts: Where the current contract length is less than 6 months and there is a history of renewal covering a 6 month period, with the same company, then this can be considered on a case by case basis.

New contractors: Must have been contracting for a minimum of 3 months. Previous experience in a similar role for a minimum period of 12 months.

For any contract with a term less than 3 months remaining, confirmation to be provided from the applicants’ employer that their contract will be renewed and TML is satisfied with the applicant’s contracting history, if requested.

Retired

The most recent 2 monthly pension statements/payslips or an annual advice notification will be required to evidence all retired income and the most recent 2 full monthly bank statements showing the income credit as validation; or

Latest letter from pension provider confirming current pension income and the most recent 2 full monthly bank statements.

Lending into Retirement

Latest annual statement of pension(s) due on retirement or recent letter from pension provider(s) confirming the pension due on retirement.
Evidence of any additional post-retirement income will be required for the income to be considered.
Terms exceeding 35 years will not be available should the loan go past the lower of the customer’s retirement age or age 70.

Other Income (% accepted)

Full amount should be keyed into the application.

Taken at 100%	Taken at 75%	Taken at 50%
Child Benefit* Maintenance Payments**	Working Tax Credit / Child Tax Credit or (Universal Credit Equivalent)***	Investment Income

Evidenced through bank statements AND award letter OR acceptable alternative.

* For children 13 years and under.
** Court ordered only and must have minimum of 5 years remaining.
*** Restricted to 25% of the total income on the application. The applicant with this benefit must have an acceptable earned income source.

Loans over £1m

Loans over £1m require evidence of the last 2 years income. The most recent year will be used for affordability.