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Affordability assessment

If you've completed our online application form and received confirmation from us that you’ve been accepted in principle, your local agent will be in touch to finalise your application.

As part of this, we conduct an affordability assessment – which we do for every new loan, even with existing customers.

Why is an affordability assessment important?

We conduct affordability assessments because we are a responsible lender. It's important for us so that we ensure the loan is manageable for you and to help you avoid running into difficulties.

For each loan application, we will attempt to verify your stated income with a credit reference agency, but if this is not possible, you will need to provide supporting documents. We need to make sure that your loan is affordable, not just today, but for the full term of the loan.

To help us do this, you may also need to provide us with some supporting documents. You can do this face to face with an agent who can visit you at your home to take copies of them.

We put our customers at the heart of everything we do and ensuring that your loan is right for you is very important to us - affordability checks help us to do this.

How does the affordability assessment work?

  1. Once you are initially approved for a loan, an agent will phone you to start your affordability assessment.
  2. If you are registered with our Customer App, you will then be invited to log in to accept your loan terms.
  3. If you are not registered with the App, your agent can help you do so over the phone.
  4. Alternatively, a face-to-face visit to your home can be arranged to help you complete your affordability assessment and accept your loan terms.
  5. Please note that in some cases, you may also need to provide us with some supporting documents. If this is necessary, an agent will be in touch with more information.

What documents will I need to provide?

Below is a list of examples of documents you can use as proof of income and outgoings. Proof of income will only be required if we are unable to verify this with a credit reference agency.

You might use apps or online services to manage your finances, so a paper document isn't necessary as long as your agent can see all the information they need along with any relevant reference numbers, and it's up to date.

Any information that you do share with us, will be treated in the strictest confidence, and will only be used to assess that the loan is affordable for you. Please make sure that you share with your agent the most up to date information, so that we really understand your current circumstances.

If you have any questions, feel free to contact us and we'll help in any way we can.

Income

Wages

  • Wage Slip
  • P60
  • HMRC Letter
  • Accounts Record
  • Tax return
  • Remittance Advice

Benefits

  • DWP letter (stating entitlement)
  • Job Centre Plus Benefits Award
  • HMRC letter (stating entitlement)
  • Working Tax Credit Letter (stating entitlement)

Pension

  • Pension Statement
  • Pension Letter (stating entitlement)
  • Pension Scheme letter (stating entitlement)

Other

  • Foster Income Confirmation Letter (stating entitlement)
  • Foster Income Remittance Advice
  • Court Order / CSA Letter (showing payments received)

Outgoings

Rent

  • Rent Book
  • Landlords Letter (stating contractual payments)
  • Local Authority Letter (stating contractual payments)

Mortgage

  • Mortgage Statement
  • Mortgage Provider letter (stating contractual payments)

Morses Club Loans

Other Loans

  • Payment Receipt Book
  • Financial Statement
  • Letter from Loan Provider (stating contractual payments)

Utilities

  • Utility Bill(s)
  • Letter from utility provider (stating contractual payments)

Living Costs

Childcare

  • Letter from registered Childminder (stating contractual payments)
  • Letter from registered play scheme leader (stating contractual payments)

Frequently asked questions

What is an affordability assessment?

The affordability assessment is a series of simple checks and questions. It doesn’t take very long, but is important to ensure that your loan is right for you.

Why do you need to carry out an affordability assessment?

At Morses Club we aim to make sure that each loan is suitable for each customer. The affordability check lets us understand a little more about your income and your outgoings, so we can make sure that you can afford your loan repayments and won’t get into any unnecessary difficulty.

Who carries out the affordability assessment?

After an initial phone call with one of our agents, you will be told what supporting documents you need to provide. It can be arranged for an agent to go through them with you in the comfort of your own home.

Completing this in person means that you can ask as many questions as you like and also helps your agent to assess your requirements on an individual basis. The same agent will then collect your loan repayments from your home at an agreed time each week.

You can make your repayments remotely via our Customer App. You can do this at any time, even if you have previously opted in for agent visits.

Do I need an affordability assessment for each new loan?

Yes – if you decide to take out more than one loan with us, an affordability check will be carried out each time. Circumstances can change very quickly, so even if we’ve gotten to know you we still want to make sure that we are providing you with a loan which suits your individual needs.

What documents will be needed for the affordability assessment?

When your agent comes to complete your affordability assessment, they may need to see some ID, like a passport or driver’s license, as well as evidence of your income and outgoings so they can make sure the loan is right for you. Your agent will attempt to verify your stated income with a credit reference agency, but if this is not possible, you will need to provide supporting documents in person. The list of documents you can use as evidence of income and outgoings can be found here.

What do you mean by ‘outgoings’?

Outgoings are any payments being taken from you on a regular basis. The most common outgoings are:

  • Rent/mortgage
  • Utility bills
  • Living costs (e.g. food, transportation)
  • Loan repayments
  • Any other payments e.g. Child Support payments

Do you need information about the income and outgoings of anyone else in my household?

No, your affordability assessment only concerns your finances – so your agent will only need to know information regarding your income and outgoings.