The big lenders cannot stay untouched from the common effect of coronavirus. The recent change in the HSBC income assessment strategy is a perfect example of that. The lenders are taking every step to ensure fewer chances of risk.

HSBC expresses its concern that the steps taken is for mutual well-being. We do not want the borrowers to get in a debt that may become unaffordable later.

Every type of income is on the dissection table

Self-employed income, employed income, variable income etc. all the types and sources of income will bear the change. For every category, there is a different policy.

Employed with furloughed or top-up income by the company

For such mortgage applicants, the affordability will be calculated based on 80% basic income. The bank wants the brokers to mention the furloughed income on the application of the fund seeker. In case the company provides a top-up income that too needs to be clarified. Every mortgage broker for self-employed in the UK needs to give the precise details of the total monthly income.


The self-employed applicants will have to provide the business bank statement of the latest three months. The rules apply to the sole trading business, partnership businesses and limited liability partnership businesses with less than 200 partners. The brokers have to mention the profit of the previous and current accounting years when they prepare the application for the fund seeker.

The underwriter will review the applications of the self-employed applicants.

Variable income

The additional income attained through the commission, bonus, overtime etc. will not be considered as the eligible source of income. However, NHS employees are exceptional. Their variable income is acceptable, based on pre-March 2020 levels.