The Loughborough has launched a Universal Credit Calculator to aid its intermediary partners in evaluating affordability for clients receiving Universal Credit and other benefits.
This tool is available on The Loughborough website and helps clarify how different income sources impact a client’s borrowing needs.
It simplifies a complex part of mortgage lending, allowing brokers to guide clients confidently through the application process.
Additionally, the society has expanded its list of assessable benefits, improving access to homeownership for more applicants.
Benefits assessed at 100% of income include Universal Credit, Child Benefit, Job Seekers Allowance, Pension Credit, Carers Allowance, Attendance Allowance, and Constant Attendance Allowance.
Meanwhile, Working Tax Credit, Child Tax Credit, Personal Independence Payment, Disability Living Allowance, Employment & Support Allowance, and Adult Disability Payment will be assessed at 50% of income.
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.”
