Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Bank of Ireland (BOI) UK updates criteria for furloughed workers

Bank of Ireland

The Bank of Ireland UK has confirmed it will accept mortgage applications from customers who are currently or expect to be furloughed

The Bank of Ireland (BOI) UK has confirmed it will accept mortgage applications from customers who are currently or expect to be furloughed.

The bank will assess the income of furloughed borrowers based on 80 per cent of their basic salary up to a maximum of £2,500 per month or £30,000 a year or 100 per cent of the salary where the employer is topping up the furloughed amount. This will be subject to evidence provided.

Bonuses, overtime and dividends will be excluded from the income assessment.

Customers will also be able to complete product transfers while on a payment break and this can be done through brokers. Brokers will have to contact the bank directly.

Illustrations and offers will then be emailed to the broker, and customers can sign electronically, eliminating the need to send documents in the post.

BOI UK will also give customers who have exchanged contracts the option to extend their mortgage offer for up to three months if necessary, to allow them to move at a later date.

Either a customer or their broker can complete the request form and both as well as the solicitor, will receive a confirmation letter when processed.

Bank of Ireland UK continues to lend up to a maximum of 85 per cent loan-to-value (LTV) across all new residential mortgages and further advances. For buy to let, this is limited to 75 per cent.

Desktop valuations also remain in place.

Iain Smith, head of intermediaries at Bank of Ireland, UK: We’re continuing to work very closely with brokers and be there for them during these unprecedented times.

The continuity of our services remains our top priority, and our business development managers will be contacting intermediaries to explain how we can support them and their customers, he said.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.