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.

Coventry stops accepting furlough income despite extension

lender



The lender has warned brokers that they are obliged to report any change to a borrower’s employment or income

Coventry Building Society has stopped accepting furloughed income on applications from new customers, despite the chancellor extending the scheme until March.

The lender has written to brokers to warn them that they are obliged to report any change to a borrower’s employment or income during the application process.

For new customers it says: We are no longer accepting furloughed income for employed applicants.

But it says: If your client is an existing customer who is looking to move, complete a transfer of equity or take additional funds, we will consider and assess their case individually.

For cases that are already in the pipeline, Coventry says: Where we are notified the client is now furloughed and can’t confirm a return to work date, their affordability will be reviewed based on their furloughed income.

If their employer is topping up their salary, this top up amount can be considered where it can be evidenced, it says.

Where furlough income is not sufficient to support the requested loan amount, the applicant can choose to continue with a lower loan amount (which meets our affordability criteria) or cancel their application, the lender said.

The lender has also clarified its position on self-employed borrowers.

It says that for new business applications: We only accept self-employed cases where the applicant has been trading for at least three consecutive months. If the applicant is not currently trading then the case should not be submitted.

For existing customers who are seeking a further advance, transfer of equity or wishing to port their loan, where they do not meet the criteria for new business these cases will be individually reviewed.

Coventry adds that for pipeline cases: Where we are notified that a self-employed applicant is no longer currently trading, their case will be individually reviewed.

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.



getting money wise

Welcome! Get your FREE access to EVERYTHING we publish…

Our goal is to show anyone how to make investing profitable. You’ll get our FREE weekly newsletter with latest news and information on investment topics along with special offers. Please take time to read our privacy policy . The information you provide us will be processed in accordance with this.