Loughborough Building Society has launched a Universal Credit calculator to assist brokers dealing with clients in receipt of the benefit.
The calculator is available on the Loughborough Building Society website and shows how different kinds of income can affect an applicant’s borrowing requirements as well as what the lender will accept.
The mutual said this would address a part of mortgage lending that is usually misunderstood and give brokers more confidence to guide clients through the application process.
Loughborough Building Society has also expanded its range of assessable benefits, which it said would improve accessibility to homeownership for more people.
It will assess Universal Credit, Child Benefit, Job Seeker’s Allowance, Pension Credit, Carer’s Allowance, Attendance Allowance, and Constant Attendance Allowance at 100% of income.
Meanwhile, Working Tax Credit, Child Tax Credit, Personal Independence Payment, Disability Living Allowance, Employment and Support Allowance, and Adult Disability Payment will be assessed at 50% of income.
Going digital
Sponsored by Halifax Intermediaries
Ashley Pearson, head of intermediaries at Loughborough Building Society, said: “The Loughborough is dedicated to making mortgage lending more inclusive and we recognise the unique challenges faced by borrowers relying on Universal Credit and other benefits. Our new calculator accounts for these complexities, offering a clear understanding of assessable income when determining mortgage affordability.
“This ensures our intermediary partners can provide clear, simple and accurate guidance to those who need it most.”
The mutual first launched calculators for brokers last year, allowing them to test scenarios before submitting an application.
