Fostering income is allowable where it is likely to continue for at least 5 years from the start of the mortgage. It will be weighted at 100%.
Where fostering represents the applicant’s primary source of income (i.e. where 50% or more of overall income is derived from fostering) the applicant will be treated as self-employed and self-employed criteria apply. There should be a 2 year track record of fostering.
Packaging guidance:
Provide:
- Letter from the council or fostering agency which confirms the amount and that this is ongoing for the foreseeable future,
- Latest month’s invoice, and
- Latest month’s bank statement showing payment
Example
Reference: (Lender)
Date: (Date)
(Your name) has been fostering through (name of council or agency)for (number of years) years.
They received (insert income) in fostering allowances from 05/04/21-06/04/23
They received (insert income) in fostering allowances from 05/04/22-06/04/24
They are currently in receipt of (insert income) every (insert frequency) and care for (insert number of placements)placement/placements.
We do not currently see any reason that this will not continue for the foreseeable future.