The Intermediary – January 2026 - Flipbook - Page 77
B RO K E R B U S I N E S S
Case clinic
as the couple are likely to qualify based on their
base salaries alone.
C AS E FOU R
Dual income with variable
commission
first-time buyer hopes to purchase a newbuild flat for £300,000 with a 10% deposit.
The annual service charge on the flat is
£3,600, and there is also a ground rent of £350
per year. Although the buyer earns £45,000 and
passes initial affordability checks, some lenders
reduced maximum borrowing due to the high
ongoing charges. Others raised concerns about
resale value and potential cladding risks.
A
FOUNDATION HOME LOANS
We may fall short of the required borrowing level.
We lend up to 4.5x joint income. Up to 100% of
commission can be considered if there’s at least
a six-month track record. Alternatively, the last
two years’ P60s can evidence commission income,
assessed individually.
Existing credit commitments will also impact
maximum borrowing. If an applicant is in their
probation period and a first-time buyer, at least six
months in the role is required, and their income
is disregarded. If not in probation, and with a
minimum of three months employment history,
income can be accepted.
TOGETHER
We can consider this application if the second
applicant has been in employment for at least 12
months in another role. In that case, we accept
applicants in probationary periods with the
first payslip provided. For the first applicant,
commission income can be included if it appears
on all payslips and is evidenced as consistent via
year-to-date calculations. We could offer up to 75%
LTV, assuming the property is of standard build.
WEST ONE LOANS
West One would consider this on a referral basis
as the second applicant has been in the role
for only four weeks. If they applied after three
months, no referral would be needed. Once that
requirement is met, then based on salaries and
potential commission, we may consider this case
on our Residential Extra range. We can use annual
commission figures in assessing affordability,
subject to it being regular and consistent.
However, it may not be necessary in this case
GEN H
If the first applicant can show a 12-month track
record of their commission, we could use 100% of
this income as an exception. The second applicant
is fine by us provided they can show 12 months’
evidence of a similar level of income in a similar
role. And at 4.6x LTI, this case might actually work
without any exception for applicant one.
THE STAFFORD BS
If there is a proven track record of commission,
we can consider using 100% of this, supported
by the P60. For the second applicant,
if they are in the same line of work, we
can take a view on the probation period.
If it is a new industry, they can apply, but we would
wait until the probation is completed.
BUCKINGHAMSHIRE BS
To consider variable commission income, the
society would require a consistent 12-month track
record. As the second applicant has only been
in their current role for four weeks, we would
need further details regarding their previous
employment history and confirmation of any
probationary period. Additional information will be
necessary to proceed with the assessment.
HARPENDEN BS
Our max LTV is 85%, so could only proceed at this
level. If this could work, we could accept all income
at 100% using three months’ payslips to confirm
salary and last two years’ P60s to demonstrate
commission.
We would need two years’ evidence to use
commission at 100%, otherwise this would
decrease to 50%. We’d also need three years’
working history.
UNITED TRUST BANK
Fluctuations in month-to-month commissions can
be considered as UTB will look at the annualised
commission and use up to 75% for affordability
purposes further supported by both applicants’
base salaries. This would be dependent on
the second applicant evidencing 12 months’
continuous employment, due to only being in
their current role for four weeks. Any applicant
in role for 6 months or longer does not need to
evidence 12 months continuous employment.
Unfortunately, at 90% LTV the useable income
for the application would not meet our minimum
required LTI for the loan amount required. ●
January 2026 | The Intermediary
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