Image of blue phone
03300 246 246
MON - FRI 9AM - 5PM

For use by mortgage intermediaries only

COVID-19
LENDING GUIDE
Image of a desk

As the impact of COVID-19 continues across the UK, we understand the uncertainty it causes for many people.

Please read this supplementary guide for some additional information we may require in the current circumstances. We’ve answered the questions we have already been asked by intermediaries but if your question isn’t there – or our answer to your question results in another one – please get in touch and we will be very happy to help. The good news is that, despite the significant change in the economic environment, Vida has kept virtually all of its flexible lending criteria and is still committed to lending to customers who are under-served by mainstream lenders.

Let’s work together to help your customers respond to the financial complexity that we all face right now.

HOW DOES VIDA TREAT PAYMENT HOLIDAYS?

Applicants must have finished the payment holiday (for secured and unsecured loans), with evidence of at least one payment made via most recent mortgage/bank statement. Please download and complete our Payment Holiday form here.

DOES VIDA LEND TO CURRENTLY FURLOUGHED APPLICANTS?

Yes, as long as the currently furloughed applicant is returning to work within the four weeks following the application date. Unfortunately, we will be unable to issue an offer prior to the return to work date and regular non-guaranteed income (e.g. bonus, commission, overtime) will not be permitted. Please note that if an applicant’s income is not needed for affordability, then no return to work date is required.

WHAT DOCUMENTS DO YOU REQUIRE IN SUPPORT OF A CURRENTLY FURLOUGHED APPLICANT?

We just need the following information: Please download and ask the employer to complete our ‘Currently Furloughed’ form here
We also require the below:
1. Copy of a 2020 payslip, prior to furlough.
2. A letter or email from the employer to the employee, confirming:
• the return to work date
• the basic salary they will be returning to, plus any additional income (e.g. shift, car allowance etc.)
• that the applicant’s terms and conditions have not changed
• that any employer top-up provided during the furlough isn’t repayable
• that the applicant isn’t/won’t be subject to flexible furloughing
3. Prior to offer we will require proof that the applicant has returned to work, evidenced either by a payslip or confirmation from the employer

HOW DOES VIDA TREAT APPLICATIONS FROM PREVIOUSLY FURLOUGHED APPLICANTS?

We just need the following information: Please download and ask the employer to complete our ‘Previously Furloughed’ form here We also require the below: 1. A letter or email from to the employer to the employee confirming:
• the date the applicant returned to work
• that the basic salary they’ve returned to plus any additional income (e.g. shift, car allowance etc...)
• that the applicant’s terms and conditions haven’t changed
• any employer top-up provided during the furlough isn’t a loan
• that the applicant isn’t/won’t be subject to a flexible furloughing
2. If the applicant’s latest payslip still contains an element of furlough income, a copy of a 2020 payslip prior to furlough will be required.

DOES VIDA STILL WELCOME SELF-EMPLOYED APPLICANTS NOW?

Yes, although, as a result of the current situation we will need the following additional documentation/information to help us understand the case. Please download and complete our ‘Self-Employed Application’ form here
1. What business sector does the applicant work within, what impact has Covid-19 had on their business and what changes (if any) have they made? What is the geographic catchment area for the customer’s business? Is it a nationwide or regional, if so, which region(s)? A one or two line description of the customer’s role and duties. Does the customer’s business have the ability to use online sales/alternative methods of trading? If “yes”, to provide details.
2. Statement from a suitably qualified accountant confirming there has been no material impact to business profitability (if required)
3. The latest 3 months’ business bank account statements (if required)

HOW DOES VIDA TREAT THE GOVERNMENT GRANT SCHEME FOR THE SELF-EMPLOYED (SEISS)?

If the applicant is currently using a Self-Employment Income Support Scheme (SEISS) then they must be back to full-time work before we can consider the application. We will require a copy of approved grant, detailing the amount and the duration the grant is due to cover. Income used to support affordability on the mortgage to exclude any SEISS income

WHAT ABOUT THE BOUNCE BACK LOAN SCHEME (BBLS) AND THE CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME (CBILS)? HOW DOES VIDA TREAT THESE LOANS?

The BBLS and CBILS self-employed support schemes cannot be used as part of the applicant’s income or to fund any part of the deposit and we cannot accept applications where these types of loans are secured against the security address. We will require information related to the loan, for example the loan amount, the monthly payment and reason for the loan

HOW DOES VIDA TREAT REGULAR NON-GUARANTEED INCOME? (E.G BONUS, COMMISSION, OVERTIME)

In addition to the latest 3 months’ payslips, we will require at least two consecutive payslips prior to March 2020, showing non-guaranteed income. The lower of the amounts over the two periods covered will be used for affordability. We’re sorry but we cannot consider non-guaranteed income from the following defined industry sectors now: Private Hire, Taxis, Chauffeur, Charity, Leisure and Tourism, Sales (Motor Trade), Construction and Property, Recruitment, Sport, Hospitality and Catering, Entertainment, Retail.

 

HOW DOES VIDA TREAT PAYMENT HOLIDAYS?

Applicants must have finished the payment holiday (for secured and unsecured loans), with evidence of at least one payment made via most recent mortgage/bank statement. Please download and complete our Payment Holiday form here.

DOES VIDA LEND TO CURRENTLY OR PREVIOUSLY FURLOUGHED APPLICANTS?

Yes. In all cases we will require the latest month’s bank statement, showing sufficient funds (excluding deposit funds for purchase) to cover 3 months’ payments or regular rental income from the property/portfolio. We’re sorry, but neither first time buyers nor top-slicing are permitted where the applicant is currently or was previously furloughed.

HOW DOES VIDA APPROACH LENDING TO SELF-EMPLOYED APPLICANTS?

In all cases we will require the latest month’s bank statement, showing sufficient funds (excluding deposit funds for purchase) to cover 3 months, payments or regular rental income from the property/portfolio. We’re sorry but neither first time buyers nor top-slicing are permitted where the applicant is self-employed

If the applicant is self employed in one of the following defined industry sectors: Private Hire, Taxis, Chauffeur, Charity, Leisure and Tourism, Sales (Motor Trade), Construction and Property, Recruitment, Sport, Hospitality and Catering, Entertainment, or Retail they will need to download and complete our ‘Self-Employed Applicants’ form here

WHAT ABOUT THE BOUNCE BACK LOAN SCHEME (BBLS) AND THE CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME (CBILS)? HOW DOES VIDA TREAT THESE LOANS?

The BBLS and CBILS self-employed support schemes cannot be used as part of the applicant’s income or to fund any part of the deposit and we cannot accept applications where these types of loans are secured against the security address. We will require information related to the loan, for example the loan amount, the monthly payment and reason for the loan.

We will not allow applications where the CBIL/BBL has been taken out in the name of the Special Purchase Vehicle (SPV) applying for the mortgage. This would suggest that the SPV is a Trading Limited Company and therefore not acceptable.

We will not allow applications from an SPV where the source of deposit is a Directors Loan and the applicant has taken out a CBIL/BBL with another company under their Directorship.

HOW DOES VIDA TREAT NON-GUARANTEED INCOME? (E.G BONUS, COMMISSION, OVERTIME)                            

Regular non-guaranteed income is not acceptable for BTL top-slicing or first-time buyer’s BTL affordability assessment.                                                        

DOES VIDA ACCEPT APPLICATIONS FROM TRADING LIMITED COMPANIES?                                  

We’re sorry but we can’t accept applications from trading limited companies. However, we do accept applications from UK-registered SPVs                                                        

 

 

MEET MILO Image of Chat Bot Close

I'm here to help with any Lending Criteria questions!

X