The Intermediary – February 2026 - Flipbook - Page 84
B RO K E R B U S I N E S S
Case clinic
would be needed. We would also accept the
second applicant after three months in the role
without referral.
At a loan-to-income (LTI) of just under 4x
income, once the required time-in-employment
is met, West One would easily assist if everything
else checks out.
C AS E T H R E E
Professional with
significant pension
contributions
A client hopes to buy their ‘dream home’
which is worth £310,000. They currently
hold a 10% deposit.
The client earns a base salary of £50,000 but
contributes 15% of this to a workplace pension,
reducing their net monthly income noticeably.
In light of this, the client is seeking the longest
possible term to reduce monthly payments.
A
FOUNDATION
Pension contributions are not deducted from
verified gross income when assessing affordability.
Therefore, we can consider borrowing up to
6x income. However, this will be subject to
professional eligibility and commitments.
In turn, a term of up to 40 years may be possible,
depending on the applicant’s age and occupation
– for instance, if their role consists of manual or
non-manual work.
UNITED TRUST BANK
The applicant’s income is insufficient to consider
lending due to not meeting our minimum LTI
requirements for a 90% LTV application.
However, had the income been sufficient,
we would deduct the monthly pension
contribution when calculating our monthly
affordability assessment.
GEN H
We would not deduct the pension from the LTI
calculation, but we may include a deduction
for the pension if it were needed to fund the
pension that will eventually repay the mortgage
into retirement.
However, the LTI ratio for this case is 5.89x,
which is above our maximum.
Nevertheless, if the buyer has any family who
could consider joining the case as an income
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The Intermediary | February 2026
booster, this could make the required loan
affordable – in which case we would be happy to
support the applicant with this case.
THE STAFFORD BS
This is something that The Stafford Building
Society could consider. If the client can confirm
the minimum pension contribution that they are
required to make, and that they would reduce to
this level in times of financial strain, we could work
on the lower contribution figure.
We can use earned income up to the age of 75
and have no further income multiple restrictions.
Each case is assessed on its individual affordability
to the client, making this one something that we
could help with.
BUCKINGHAMSHIRE BS
All pension contributions must be deducted from
the income assessment.
In light of this, the society could consider a
mortgage term of up to 40 years, based on earned
income. This would also be subject to plausibility
and the applicant’s stated intention to work until
age 75.
Beyond this age, affordability would need to be
supported solely by pension income.
HARPENDEN BS
Our max LTV is 85%, but if this could work for the
clients, we could consider this case. This would
also depend on how the pension contributions
affect affordability, as they will need to be
deducted from the income.
We can accept non-manual working income up
to the of age 75 and even look to stretch the term
beyond this point if affordability will still be met by
subsequent retirement income.
TOGETHER
Together would assess affordability based on net
income, initially using standard ONS outgoings,
but can consider actual stated outgoings if needed.
Our maximum term is up to age 70 on earned
income, or pushed up to age 85 if the pension
income supports affordability.
However in this case, we could offer up to
75% LTV.
WEST ONE LOANS
We would have to factor the pension contribution
into our affordability calculations.
However, if that is acceptable to the applicant,
we would likely be able to assist the case on our
Residential Extra range as the LTI is between 5x
and 6.5x income.
