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• What are some sources of income for a mortgage applicant?

  Basic wage, overtime, bonuses, trust income, maintenance payments, and state benefits
• How does the lender assess income from overtime, bonuses, and commissions?

  They may disregard volatile income or take the lowest figure or average over three years
• What does MCOB stand for in the context of mortgage advice?

  Mortgage Conduct of Business
• What types of expenditure must lenders consider according to MCOB rules?

  Committed expenditure and basic essential living costs
• What is the lender's approach to assessing the reliability of evidence for expenditure?

  They may rely on the customer unless there is reasonable doubt
• What are examples of existing expenditure that must be considered by lenders?

  Car loans, minimum credit card payments, and maintenance payments
• What new expenditures should lenders consider after mortgage completion?

  Mortgage repayment, council tax, water charges, utilities, and credit repayments for household goods
• What is the best way for lenders and applicants to assess income and expenditure?

  • Prepare an income and expenditure projection for the household
  • Many lenders provide pre-prepared documents to assist with this
• What is the purpose of the income and expenditure projection?

  To assess the financial situation of the household
• Why is it important to consider both existing and new expenditures when applying for a mortgage?

  Because both types of expenditure impact the overall financial assessment