OSB publishes criteria for furloughed and self-employed borrowers

  • 02/06/2020
  • 0
OSB publishes criteria for furloughed and self-employed borrowers
One Savings Bank (OSB) has published its criteria affecting borrowers who are receiving contributions to their income from the government’s various income support schemes.


Precise Mortgages and Kent Reliance for Intermediaries will both accept furloughed borrowers for residential applications.

This will be at 80 per cent of income to a maximum of £2,500, along with any evidenced employer top-up above this amount.

However, for those on the Self Employed Income Support Scheme (SEIS), current income will be used for affordability purposes where evidenced.

And it will not accept bounce back loans and coronavirus business interruption loans (CBILs) as a source for a deposit.

Where buy-to-let cases are concerned, OSB is still not accepting applications with top-slicing.

Where the landlord has income that is unrelated to buy to let, and is in receipt of furlough or SEIS income, then the application can be considered.

Again, bounce back loans and CBILs are not acceptable as a source of deposit.

The lender stressed that there may be additional underwriting requirements applied to these situations and brokers should check with the lender before submitting cases.


Pipeline cases

OSB, which includes Interbay Commercial, added that all buy to let and residential pipeline cases where valuation fees have been paid, will be progressed in line with the lending policy in effect at the time of application.

This includes honouring the product the case was initially submitted on.

Again, OSB noted: “As expected in the current climate, there will be some additional underwriting checks needed, such as ensuring the client’s current circumstances are considered.

“However as long as these requirements are met, the original application will be able to progress.”


Exceptional circumstances

OneSavings Bank managing director Alan Cleary (pictured) said he was fully aware how important it was to a broker and their customer that when they paid a fee for a product, they had the confidence that their transaction will be honoured.

“We’re in a position that we can move forward as a group and help brokers develop their business as well as ensure they can continue to service their existing customers,” he said.

“We’ll work on cases in date order but ask that brokers please bear with us as we’re working in exceptional circumstance at reduced capacity.

“Our broker partners have my personal assurance that we’ll get to them to discuss their client’s needs and will uphold existing arrangements subject to underwriting,” he added.



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