The Intermediary – January 2026 - Flipbook - Page 75
B RO K E R B U S I N E S S
Case clinic
the base salary and 100% of overtime where
there is a clear history of this income. We can lend
to age 75 to help keep payments manageable,
and we have no income multiple restrictions,
which may allow us to offer higher yet affordable
loan amounts, than lenders with strict income
multiples.
BUCKINGHAMSHIRE BS
The society may be able to consider this request,
given the applicant’s strong professional standing
and positive track record with the NHS.
At the Decision in Principle (DIP) stage, 50%
of the applicant’s overtime income would
typically be taken into account. Should a higher
proportion be needed, it may be considered on a
case-by-case basis.
HARPENDEN BS
This is indeed a case we could consider, but at
85% LTV as this is our maximum presently. If this
could work, we’d be more than comfortable with
the employment set up and income situation
here given the three year history and professional
industry. We would request a copy of the current
contract, three months’ payslips and last two
years’ P60s.
have first-year accounts but can provide consistent
monthly invoices and have a strong contract. They
also have £7,000 in credit card balances and a £210
monthly car loan.
FOUNDATION HOME LOANS
Ordinarily, being self-employed for less than a year
would make this case unacceptable. However, as a
specialist and flexible lender, we’d review the case
even further.
We’d need to understand income in more detail,
including the last P60 from employment and
confirmation from the accountant on the current
income level. These could support consideration
on an exception basis.
TOGETHER
Normally, we require 12 months of trading history
for self-employed applicants. However, as this
client is working on a contract basis and has been
doing so for 10 months, we could consider using
the average of the last nine months’ income,
subject to tax deductions.
The applicant’s outgoings will be assessed for
affordability as usual, and we could support up
to 75% LTV assuming the property is of standard
build.
UNITED TRUST BANK
WEST ONE LOANS
The applicant’s rotational contract, moving
hospital trusts every six to 12 months, is perfectly
acceptable and not uncommon. Combined
with their ability to demonstrate a three-year
employment history, they are a good applicant.
Sadly, in this instance, even with the additional
overtime taken into consideration, their
income falls short of our loan-to-income (LTI)
requirements. At 90% LTV, UTB requires a
maximum LTI of 4.5.
West One accepts self-employed individuals who
have at least 12 months’ trading history and one
year’s tax returns.
Once the client has met this requirement, we
would be able to work off the first year’s trading
figures and can lend the required amount on our
Residential Extra range up to 97.5% LTV, subject
to affordability checks. The outstanding debts will
need to be cleared with the loan to proceed.
GEN H
C AS E T WO
Newly self-employed after
long employment
client wants to buy a home worth
£420,000 with a 15% deposit. They
were employed for 10 years in the same
industry, earning a £60,000 annual salary, before
becoming self-employed 10 months ago doing the
same work on a contract basis. They do not yet
A
With a good rationale and evidence of a similar
level of income, we could consider making an
exception for the absence of first-year accounts.
However, this buyer still runs into an affordability
problem – the LTI ratio is 6x, above our maximum.
An Income Booster could help bridge this gap
without having to contribute any money to the
mortgage or monthly payments.
THE STAFFORD BS
We would need to see one full year’s accounts
before we could consider the application.
BUCKINGHAMSHIRE BS
The society would be unable to consider this →
January 2026 | The Intermediary
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