The change from Santander will apply from 18 March and borrowers must be receiving another source of earned income either as an employed or self-employed worker.
This primary source of income must be evidenced on the Universal Credit statement.
Proof of the last six months of Universal Credit payments are required for an assessment, along with a breakdown of payments and deductions.
Santander will not accept bank statements as proof of Universal Credit income.
It will calculate affordability using an average of the last six months of Universal Credit payments minus the latest month’s housing benefit.
Clydesdale Bank increases mortgage rates
Clydesdale Bank will be increasing rates across select mortgages from 19 March.
Its residential two- and five-year fixed rates at 65 and 75 per cent loan to value (LTV) will rise by as much as 0.13 per cent, while two-year fixes for professional borrowers at 75 per cent LTV will go up by 0.05 per cent.
Its exclusive residential two- and five-year fixed rates will be increased by up to 0.1 per cent.
Clydesdale Bank is reducing select buy-to-let (BTL) and interest-only mortgage rates.
Its two- and five-year fixed BTL rates will be cut by 0.3 per cent, while select two- and five-year fixed interest-only deals at 80 per cent LTV will be reduced by 0.05 per cent.
This is the second time this month it has amended its mortgage rates. Earlier in March, Clydesdale Bank made increases across select products for new and existing borrowers.
