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?
- Once you are initially approved for a loan, an agent will phone you to start your affordability assessment.
- If you are registered with our Customer App, you will then be invited to log in to accept your loan terms.
- If you are not registered with the App, your agent can help you do so over the phone.
- Alternatively, a face-to-face visit to your home can be arranged to help you complete your affordability assessment and accept your loan terms.
- 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.
What is Open Banking?
Open Banking is a simple and secure way to give us access to your financial information through Account Information Service Providers (AISPs). Open Banking and AISPs are regulated by the Financial Conduct Authority (FCA) and must adhere to data protection legislation.
Why do Morses Club use Open Banking?
We may use information made available through Open Banking as part of our credit and affordability checks, so that we can make informed lending decisions. The service we ask you to agree to when applying for a loan allows us to view the information that appears on your bank statements and is a paper-free way of sharing your income and expenditure information with us so that we can thoroughly and fairly assess whether you can afford to take out a loan. It also removes the need for you to send bank statements, payslips or other income and expenditure-related information to us.
How does Open Banking work?
It's as simple as logging into your online banking. During the application we'll redirect you to consents.online, who will ask you to provide your first and last name, email address and phone number. You'll then be asked to select which bank/building society you hold your current account with, before being asked for your consent to access your statement data and share it with us. Once you've agreed, a secure, encrypted connection will be made with your bank/building society and you'll be asked to authenticate yourself in the same way as you log in to online banking. Your bank/building society will then ask you to confirm that you would like to share your account information with consents.online before this is passed to them, who will then share it with us.
If you agree to this service, we'll be given read-only access to your recent statement information, so that we can complete your loan request. None of your log on information will be shared.
Who is consents.online?
Consents.online are a FCA-regulated Account Information Service Provider (AISP). Consents.online offer a quick, easy and secure way to provide your financial information using Open Banking.
In addition to helping you share your data in a safe and secure way, consents.online also provide you with access to a free portal (available online and via an app if you agree to this option during your application) where you can see what you've shared, control and revoke access to your data at any time. Should you choose to revoke access, it will mean that consents.online and anyone you previously consented to them sharing your information with, including us, will no longer be able to view your account information, unless they are required to store it by law.
Is consents.online safe?
Consents.online uses rigorously tested software and security systems. By agreeing to share your data using consents.online, you're always in charge. You can decide what information can be accessed and for how long. No one is allowed access unless you give your permission.
Is consents.online regulated?
Yes, consents.online are regulated by the FCA and must adhere to data protection legislation. To see their credentials click here.
How can I be sure that a consents.online is secure?
Consents.online is required to meet certain criteria relating to keeping your data safe and secure in order to be registered with the FCA. They also comply with the security standards that underpin Open Banking and with the ISO 27001 global security standard.
