Affordability Assessment


What is the Affordability Assessment?

The Affordability Assessment is designed to check that you can afford to borrow the amount you have requested and is carried out by your Agent every time you apply for a loan.

Why is the Affordability Assessment being carried out?

As a responsible lender, we need to ensure that our loans are affordable for each customer. The Affordability Assessment will check that customers can afford to repay their loan over the period it’s borrowed.

When will the Affordability Assessment be performed by my Agent?

The Affordability Assessment will be completed as part of your loan application process. It will take place when your Agent comes to your home to discuss your loan requirements.

What will be needed for the Affordability Assessment?

In order to complete the Affordability Assessment, your Agent may ask to see one or more of the following:

  • The latest payslip(s) from your employer;
  • Letters/statements from the DWP or HMRC showing Benefits amounts;
  • Letters/statements showing your Pension income;
  • Any documentation you may have which shows your self-employed income;
  • Your rent book;
  • Documents showing the amounts you repay on loans that you have with other lenders;
  • A court order or CSA letter showing maintenance payments you receive from an ex-partner.

What kinds of income will my Agent take into account?

Your Agent will consider all sources of income including:

  • Payments from your employer,
  • Your self-employed income,
  • Benefits
  • Pensions
  • Other sources of income such as regular payments you may receive from your partner or ex-partner.

I have other forms of income, can these be taken into account?

Yes. Other forms of income such as board paid by lodgers or payments made by the local authority can be taken into account. Please discuss this with your Agent.

My spouse/partner contributes monthly for household expenses. Can this be taken into account?

Yes, provided that this amount is taken from their income and your Agent is satisfied that the amount is paid regularly.

Do you need to know my partner’s income?

Your Agent only needs to know about your own income and outgoings. Your partner’s income is not taken into account.

Are there any kinds of income which my Agent will not take into account?

We do not allow income to be taken into account where it will not continue over the term of the loan. For example, if you are applying for a one year loan but you are relying on Child Benefit or Child Tax Credits which will shortly cease because your child is leaving full time education then your agent won’t take that into account.

My partner pays some bills, do I need to declare these?

No, your Agent does not need to know about outgoings which are paid directly by your partner.