The Intermediary – October 2026 - Flipbook - Page 91
B RO K E R B U S I N E S S
Case clinic
We would need to know if it’s like-for-like
employment, or even the same employer, in which
case we could consider this, as well as whether
there’s any probation period. If there is a sixmonth probationary period, we’d likely accept
the application and require confirmation that the
probation has been met before completion.
MARSDEN BS
This could be a straightforward case for the
Marsden. We’ll consider returning expats and,
based on the information provided, the case
appears to fit comfortably within our lending
criteria, with no concerns around the LTV. If the
applicant is still in probation, we can still proceed
provided there are no gaps in employment, and
they’ve moved to a like-for-like role.
C AS E T WO
Applicant with
substantial overtime
Based on just the basic salary alone, sadly this
does not meet our LTI affordability requirements.
HARPENDEN BS
This is a case we would be happy to consider;
however, the recent reduction in overtime means
we would need to take a cautious approach and
would review the latest three months’ payslips
for affordability. In relation to the £5,000 personal
loan, if the borrowing is to remain in place, the
monthly commitment would be factored into our
affordability assessment. However, where the loan
is due to be repaid within the next six months, we
may be able to disregard the commitment.
BUCKINGHAMSHIRE BS
For the society to consider overtime income in
affordability calculations, a strong and consistent
track record would need to be evidenced.
Each case is assessed on its individual merits,
and consideration will be given to the overtime
income received. However, it may not be
possible to use 100% of the overtime income,
and a reduced amount may be applied within the
affordability assessment.
reduction
TOGETHER
warehouse manager earning a basic salary
of £39,000 is purchasing a £350,000
property with a 15% deposit. Regular
overtime had increased annual income to around
£52,000, but a restructuring has significantly
reduced overtime opportunities in the past six
months. While employment remains secure,
the applicant is unsure how this development
will impact their application. They have a small
personal loan with £5,000 outstanding.
A
We would consider lending up to 75% LTV,
meaning the applicant’s 15% deposit puts them
in a good position. While they have historically
benefited from regular overtime, we would
assess affordability based on their current income
situation. If the overtime is no longer being
received at the same level, we would remove
it from the affordability calculation and rely on
their eligible income instead. The application
would then be considered subject to affordability
and underwriting.
GEN H
SUFFOLK BS
This borrower would be limited by loan-toincome (LTI) multiples, and we’d look closely at
the overtime. Generally speaking, we annualise
overtime and weight it at 75%, but this would be
based on the applicant’s sustainable income and
not income that is no longer earned.
Affordability is likely to be over £60,000 from
the applicant’s loan requirement based on LTIs
and is likely to be further challenged after the
application of that 75% weighting. An income
booster could help make this affordable, but
the borrower would need to be honest with
themselves – would the repayments each month
be comfortably affordable without overtime?
We would need to understand more around the
overtime situation and what it looks like going
forward. A letter from their employer confirming
overtime opportunities could be a possibility.
We’d be keen to look into this further and
find out what the ‘new normal’ looks like
for the applicant and see what we can do to
support them.
UNITED TRUST BANK
It would be prudent here as a responsible lender to
only use the basic salary to support affordability,
given the changed availability of regular overtime.
MARSDEN BS
We could consider this case up to 85% LTV with
a residential product, subject to availability. We
would assess the applicant’s income using 100%
of their basic salary and 60% of overtime income,
calculated by using the last six months’ overtime
and annualising the figure.
The applicant’s existing personal loan
would be considered as part of our affordability
assessment.
October 2026 | The Intermediary
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