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Santander further tightens self-employed evidence requirements

  • 23/12/2020
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Santander further tightens self-employed evidence requirements
Santander has further tightened underwriting for self-employed mortgage applicants in response to the introduction of more government restrictions relating to the Covid-19 pandemic.


The changes affect all new applications, those already submitted that have not been agreed and any applications where there has been a material change of situation.

Where businesses are not currently trading due to tier restrictions Santander will not be able to use that income for its affordability assessment.

Further evidence will also be required to support bank statements.

Where the customer uses personal bank statements for their business, business related credits need to be highlighted to assess current trading levels.

Where SA302s are used to prove income –the business turnover must be provided to help cross reference with bank statements.

And in addition, to providing a supporting rationale that the business bank statement backs up the income declared, applicants must also provide supporting rationale that the income is sustainable going forward.


Introduction of Tier 4

The changes follow and are in addition to those made last month requesting additional and up-to-date evidence of trading.

Where a borrower’s income or business has not been affected by the pandemic, advisers must tell the lender why they have not been affected or how they have changed the way they operate.

And confirmation must also be provided that the business can continue to trade under any current or future lockdown restrictions in a way that allows the income declared on the application form to be sustainable.

Santander for Intermediaries head of sales Helen Harrison (pictured) said: “We aim to help as many self-employed customers as possible with their mortgages.

“With the introduction of Tier 4 restrictions, we’ve issued guidance to brokers to help them understand exactly what paperwork our underwriters need to agree as many mortgages as we can for self-employed customers affected by Covid restrictions.”

Evidence requirements for Santander’s PAYE and buy-to-let applications have not been changed and brokers must provide full details of Covid impacts on client income and personal circumstances.

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