Loughborough Building Society has launched its Universal Credit Calculator to help brokers assess affordability for clients receiving Universal Credit and other benefits.
The interactive tool is on the society’s website and clarifies how various income sources factor into a client’s borrowing requirements and what the lender will accept.
The Loughborough says the calculator also simplifies an often misunderstood aspect of mortgage lending, enabling brokers to guide clients through the application process with greater confidence.
Meanwhile, the Society has also expanded its range of assessable benefits, further improving accessibility to homeownership for a wider pool of applicants.
The following benefits will be assessed at 100% of income: Universal Credit, Child Benefit, Job Seekers Allowance, Pension Credit, Carers Allowance, Attendance Allowance, and Constant Attendance Allowance.
The following benefits will be assessed at 50% of income: Working Tax Credit, Child Tax Credit, Personal Independence Payment, Disability Living Allowance, Employment & Support Allowance, and Adult Disability Payment.
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.”
