The Intermediary – August 2026 - Flipbook - Page 85
B RO K E R B U S I N E S S
Case clinic
year fixed-term contract, earning £46,000 per
year. They want to purchase at £325,000 with a
15% deposit. Their current contract has 14 months
remaining, and funding for the project is likely to
continue. The applicant has a clean credit history
and no outstanding debts.
GEN H
This buyer will be limited by LTI multiples and will
be around £70,000 short on affordability. As far as
the income type is concerned, Gen H has no issues
– they have a clear track record. If they have any
other income like a side hustle and can tip their
allowable gross income over £50,000, they can
become eligible for over 4.49x LTI lending which
could help close the affordability gap. The other
option is using an income booster – a close family
member in this instance, as their deposit is less
than 20% – to close the gap. The income booster
doesn’t need to put any money up and could
unlock the mortgage they need instantly.
indication that project funding is likely to continue,
this could be a positive factor. We could consider
lending up to 75% LTV, subject to affordability and
underwriting requirements.
SUFFOLK BS
Employment status wouldn’t be an issue. They are
currently in a contract, plus it appears to be in the
same line of work. We lend to the self-employed,
so we’d be comfortable with this. The challenge
is the LTI ratio, which is 6x, and the subsequent
affordability. Once living costs and household bills
are factored in, a repayment mortgage on one
income could be a stretch.
C AS E T H R E E
Applicant with
commission income
UNITED TRUST BANK
The applicant has sufficient income and
contracting history coupled with a reasonable
length of current contract time remaining and the
likelihood of this continuing.
HARPENDEN BS
The applicant has a strong and consistent
employment history, having worked within
the public sector for the past seven years, and
having worked at least 12 months on their fixedterm contract.
Where available, we would welcome any written
confirmation from the employer regarding a
contract extension or continued funding. We
would expect to see the latest three months’
payslips and most recent P60.
BUCKINGHAMSHIRE BS
The society can consider this given the applicant’s
strong employment track record. The current
contract has a substantial term remaining, and
there is no requirement for a minimum number of
months to be left on the contract or confirmation
that it will be renewed due to the good track
record the applicant has. The requested loan is
below 90% LTV, with a clean credit history with no
outstanding unsecured debts. These factors help
to support the overall strength of the application.
sales manager is purchasing a £420,000
home with a 10% deposit. They receive a
basic salary of £45,000, alongside annual
commission between £12,000 and £18,000 over
the past three years. They have worked for the
same employer for six years, have no unsecured
borrowing and are relying on both elements of
their income to support the application.
A
GEN H
This would require an income multiple of 6x, which
is outside of policy. Commission is typically capped
at 50%, but a higher amount could be considered
based on track record. We would recommend
using an income booster. Because they’re using a
10% deposit, the income booster will have to be a
close family member – but assuming the booster
has discretionary income each month, this will
almost certainly make the mortgage affordable
pending a full underwrite.
UNITED TRUST BANK
TOGETHER
UTB can consider 75% of the applicant’s annual
commission (averaged over the last two years) in
addition to the basic salary. Unfortunately, the
total income on this basis is insufficient to meet
our LTI affordability requirements.
We could look at this case despite the applicant
being on a fixed-term contract, as contractors
are acceptable where there is evidence they are
continuing in the same field or line of work under
the new contract. Given their track record and the
Unfortunately, the requested 90% LTV exceeds our
→
maximum LTV of 85%.
HARPENDEN BS
August 2026 | The Intermediary
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