The Intermediary – July 2026 - Flipbook - Page 87
B RO K E R B U S I N E S S
Case clinic
Details of the planned building works would also
need to be provided. The case should be submitted
with supporting information for full consideration.
HARPENDEN BS
Although we can accept ex-local authority flats, we
would require a minimum of a 25% deposit.
WEST ONE LOANS
On ex-local authority flats, we only offer
mortgages up to 75% LTV. If the client had a large
enough deposit, we would need to know whether
the planned building works would carry any cost
to the client for our affordability assessment.
SUFFOLK BS
While we do look at each case on an individual
basis, the income from the applicant alone doesn’t
work in this case unfortunately, as we’d only be
able to offer a maximum of 4.49-times income.
We could, however, look at the possibility of
a joint borrower sole proprietor mortgage if the
applicant has parents or close family members
willing to support them with the purchase.
The block itself would be subject to further
investigation – we can discuss with our valuers
upfront if needed. The address and details would
help us make an informed decision at the initial
enquiry stage.
UNITED TRUST BANK
Unfortunately, the applicant’s earnings do not
meet UTB’s minimum LTI requirements.
GEN H
Assuming a lender could use 100% of the overtime
income, this applicant would still need to borrow
7.1-times their income which is outside policy for
almost all lenders.
The applicant could add an income booster
to help make the mortgage affordable, but they
would need to be very cautious in making sure
their payments are genuinely affordable for them
month-to-month.
HARPENDEN BS
We can accept the applicant’s overtime income,
subject to being consistent for the past two years.
However, we would not be able to accept this at
90% LTV and would need to take into account the
applicant’s childcare costs.
BUCKINGHAMSHIRE BS
The society would need to evidence the
sustainability of the overtime, supported by a
strong track record.
Where the applicant is employed within the
emergency services, up to 100% of overtime
income may be considered for affordability.
An average will be taken based on the past
two years’ P60s and the most recent three
months’ payslips.
SUFFOLK BS
C AS E F I V E
Applicant relying on
overtime income
single buyer with children is hoping to
purchase a £335,000 property with a 10%
deposit. They earn a £34,000 base salary
working in emergency services, alongside regular
overtime which increases annual earnings to
around £42,000.
The overtime has been consistent for the past
three years but varies month-to-month depending
on staffing levels and shift patterns.
The applicant has a good credit profile and no
unsecured debt, though monthly childcare costs
are relatively high.
They are seeking a longer mortgage term to help
balance affordability alongside family expenses.
A
Again, the loan-to-income ratio isn’t ideal for this
case. We could certainly include the overtime
for affordability calculations, but even using
100% of this doesn’t get this buyer where they
need to be. Then there’s the expected impact of
childcare costs.
A joint borrower sole proprietor mortgage may
be a good solution here, if the applicant has close
family who are happy to help.
By adding a parent or older relative to the
mortgage, the perception is often that it will
impact the mortgage term, however.
We can lend up to age 90 at 90% LTV. We would
need to understand the circumstances and income
of the family member(s) but if they’re willing or
able to consider JBSP this could be one for us.
WEST ONE LOANS
Unfortunately, even with regular overtime,
the loan size required for this mortgage would
not be affordable based on the applicant’s
yearly income. ●
July 2026| The Intermediary
85
