New online calculator helps brokers assess income from Universal Credit and other benefits for home loan applications
Loughborough Building Society has introduced a new online Universal Credit Calculator, aimed at helping mortgage brokers assess affordability for clients receiving Universal Credit and other state benefits.
The tool, now live on the society’s website, allows brokers to see how different income sources are treated during the mortgage application process. It also outlines which benefits are accepted and at what level, helping intermediaries better guide clients through eligibility criteria.
The mutual has also expanded the types of benefits it considers as assessable income. Universal credit, child benefit, jobseeker’s allowance, pension credit, carer’s allowance, attendance allowance, and constant attendance allowance are all now assessed at 100% of income.
Other benefits — such as working tax credit, child tax credit, personal independence payment, disability living allowance, employment and support allowance, and adult disability payment — will be considered at 50%.
“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,” said Ashley Pearson (pictured), head of intermediaries at Loughborough Building Society.
“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.”
The new tool follows recent digital upgrades at Loughborough, including the rollout of a mortgage origination platform earlier this year. The system features automated decisioning technology designed to speed up application processing, while still supporting manual underwriting where needed.
The platform supports a wide range of products including residential, retirement interest-only, shared ownership, buy-to-let, holiday lets, 100% lending, joint borrower sole proprietor, adverse credit, and government-backed schemes such as Right to Buy and Right to Acquire.
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