Packaging & criteria

Credit commitments

Where any of the owners or income boosters have current formal or informal commitments in place, the commitments must be disclosed following the logic below.

We use Experian data and personal bank statements to verify this information.

Where an instalment loan is present (e.g. a personal loan) the loan payment should be included as expenditure.

Where a customer is looking to consolidate debt as part of our transaction upon completion (remortgage with additional borrowing), all debts must be included.

If a commitment has already been paid off or will be paid off before completion, it can be excluded when you key a decision in principle.

Revolving credit

Where the customer is using a revolving credit facility – such as a credit card or overdraft for everyday transactions – and repays the balance in full each month, the commitment may be excluded where:

  • The payment does not exceed the customer net monthly income
  • The repayment is covered by income, not by drawing on savings or additional borrowing

This will be verified against the last 6 months payment history confirmed on Experian.

For any standing revolving credit facility balances, 3% of the balance will be included as an expense.