When Metro Finance complete the affordability assessment, they will ensure Homes England's Capital Funding Guide (HEs CFG) is met and that purchases are affordable and sustainable. Customers must have a minimum 10% of their net mortgageable income remaining after all deductions and the stress tested rent.
Additionally, we expect customers to have a minimum 10% of their total net income remaining on the Metro Finance budget planner, in line with their mortgage compliance affordability. Metro Finance cannot suggest customers purchase a share that results in less than 10% of their total net income remaining, as we would deem this unaffordable / unsustainable
This Monthly Minimum Surplus Income Policy applies where the customer is using Metro Finance and where they have chosen their own route. Metro Finance will provide us with both calculations and this information is used for affordability / sustainability sign off.
The Monthly Minimum Surplus Income Policy protects the customer against potential increased costs or unforeseen circumstances that have not been budgeted for. All income used for the assessment must be considered sustainable and acceptable by mainstream lenders, or Metro Finance may exclude the income from the assessment. Reported expenditure must be realistic for the household composition and where it is below expected (based on Office of National Statistics (ONS) data) it will be verified using bank statements.