The Intermediary – August 2026 - Flipbook - Page 86
B RO K E R B U S I N E S S
Case clinic
BUCKINGHAMSHIRE BS
The society can consider additional income
and may be able to use up to 100% of this
income when assessing affordability. A strong
and consistent track record would need to be
evidenced, typically through the last two years’
P60s. An average of the income received over
the relevant period would normally be used. The
society would also need to be satisfied that the
commission income is sustainable.
TOGETHER
As the applicant is relying on both their basic
salary and commission income, we would look to
include the commission in our assessment.
Given that commission has varied over the last
three years, we would need to see it evidenced
on all payslips provided and that it is consistent
with the year-to-date figures. This would help
demonstrate the income is sustainable and
support the affordability assessment.
We could consider lending up to 75% LTV, with
the applicant’s profile further strengthened by
six years’ continuous employment with the same
employer and no unsecured borrowing.
SUFFOLK BS
We could use up to 75% of commission (possibly
more depending on the role). We’d need to
understand a bit more about the fluctuation. Even
if this applicant was able to use 100% of their
commission, they’d still be looking at a high LTI
ratio (6x), which would rule us out as a lender.
C AS E FOU R
Buy-to-let remortgage
with capital raising
landlord wants to remortgage a BTL
property worth £290,000, with an
outstanding mortgage balance of
£140,000, to fund the deposit on another
investment property. The property has been
occupied by the same tenants for four years and
generates rental income of £1,150 per month.
Alongside their rental portfolio, the applicant
earns £39,000 from full-time employment.
A
UNITED TRUST BANK
The loan purpose to raise capital to fund an
additional property purchase is perfectly fine.
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The Intermediary | August 2026
This is an application we can consider subject to
affordability; however, the applicant’s own income
will be discounted from affordability assessment.
HARPENDEN BS
This is a case we would be happy to consider,
provided the remortgage meets our minimum loan
size requirement of £150,000.
If affordability is challenging, we can top-slice
using the applicant’s employed income of £39,000,
provided the property is held as a personal BTL.
We would also need to confirm that the applicant
owns no more than three BTL properties in total,
as we do not accept professional landlords under
our personal BTL proposition.
BUCKINGHAMSHIRE BS
Capital raising on a BTL is acceptable where the
funds are being used to provide a deposit for
another investment property.
The applicant meets the minimum income
requirement of £25,000; however, further
information would be required to confirm whether
they own their own residential property, as this
may determine whether the case can be assessed
using an ICR-based approach. Clarification would
be required as to whether the applicant would be
classed as a portfolio landlord and to ensure the
appropriate product.
TOGETHER
When assessing this, we would apply our standard
rental affordability calculations, requiring rental
income to cover 125% of the mortgage payment
for basic-rate taxpayers or 145% for other tax
positions. We would also want to see evidence of
the onward purchase.
We could consider lending up to 75% LTV on a
BTL refinance, potentially allowing the applicant to
raise capital from the property’s value to support
their portfolio expansion.
MOLO
Capital raising is available up to 75% LTV, with fees
added above that to a maximum of 80% gross,
and releasing equity to fund a deposit on a further
investment property is a purpose we support
without hesitation.
We would not require an onward purchase
to be identified or to complete alongside the
remortgage, which gives the client room to find
the right property once funds are available.
Employed income of £39,000 is not a constraint
given we apply no minimum income requirement,
and there is no cap on the number of properties
held in the background portfolio. ●
