For properties that are not self-supporting, for example Second homes/holiday homes, we will require details on ongoing costs, for example, maintenance costs, service and utilities and council tax.
For those with a mortgage, we will additionally require the mortgage balance outstanding and the remaining term. This will be calculated as a deduction at the MPowered SVR +3%
For Residential mortgages that will remain outstanding, all costs associated with the property need to be factored into the affordability assessment.
Stress second home mortgage, to be added as a mortgage credit commitment:
We will require following expenditure for the second property
- Council Tax
- Service Charge & Ground Rent
- Utilities
- Other committed expenditure associated with the property