Assessment and Affordability Policy

Assessment and Affordability Policy

Platform operate a first come, first served policy for allocating our properties. 

Upon receipt of a customer’s application form, our sales team will check headline eligibility to ensure the gross household income is less than £80,000 and the customer would be unable to purchase a suitable property for their housing needs on the open market.

Platform have established a panel of advisors to undertake affordability assessments for all customers, whether purchasing with cash or a mortgage.

Once headline eligibility has been approved, we will refer customers to a third party (Just Mortgages/Metro Finance) to carry out an affordability assessment.  Affordability will be calculated using the Homes England budget planner from 1st August 2024. 

Shared Ownership customers can expect their financial assessment to be carried out free of charge by a suitably qualified and experienced advisor that is regulated to give mortgage advice. Customers are not obligated, however, to arrange a mortgage with the advisor undertaking their financial assessment.

In the instance of receiving multiple applications for the same property, these will be allocated on a first come first served basis in order of receipt, following successful stage 2 sign off from a suitably qualified, experienced, and regulated mortgage advisor.

Stage 2 sign off consists of a more detailed assessment of income and expenditure, circumstances and preferences including any known or future changes that will impact income and / or expenditure. This more detailed assessment will involve a budget planner.

If a local connection for the property is required, priority will be given to those with a local connection as detailed by the Section 106 agreement.  

Customers will also be required to meet the conditions within our adverse credit policy, currently in place with Just Mortgages and Metro Finance, subject to exceptional circumstances which will be reviewed on a case-by-case basis. 

For cash purchases, the same principles apply and our cash buyer policy can be found separately. 

Platform have established a surplus monthly income policy for customers which sets out the minimum amount of money remaining should be at least 10% of their total net income, following the assessment of all elements of their income and expenditure.  A maximum amount has not been set as individual circumstances need to be able to be accounted for. The 10% leeway protects the customer against possible increased costs or unforeseen circumstances that have not been budgeted for. 

It is expected that the expenditure will be realistic for the household composition. Anything which is below perceived average (ONS - Office for National Statistic) spending will be verified via bank statements and an explanation provided.

This falls in line with mortgage compliance affordability by our providers. Our advisors will be unable to suggest a share that does not fall within these parameters, as this would not be deemed ad affordable or sustainable. 

This rule shall apply if the customer chooses to use the advisor for their mortgage, or if they have chosen their own route. 

Further details for the budget planner can be found here - budget planner guidance note

The core principles of the budget planner are below:

• Step 1 – gross household income (A)
• Step 2 – deductions from gross income (B)
• Step 3 – known commitments (C)
• Step 4 – housing costs (excluding mortgage) (D)
• Step 5 – net income remaining for mortgage purposes (E = A – B – C – D)
• Step 6 – mortgage cost (F = no greater than 30% of E)
• Step 7 – other essential expenditure (G)
• Step 8 – provider’s minimum surplus income policy (E – F – G must be greater than this)

The final stage will be a sign off sheet, provided by the advisor, confirming the assessment detail, key information relating to the affordability, advice on the share to be purchased and the outcome of their affordability assessment. This sheet must be signed by the advisor, the customer and Platform.