The Intermediary – August 2025 - Flipbook - Page 83
B RO K E R B U S I N E S S
Case clinic
evidence/confirmation of how this level of income
will be sustained throughout the mortgage term.
Please note though our maximum LTV is 85%.
TOGETHER
Together could consider the £61,000 received
in income from the previous year and would not
average this with the year before.
If the applicants were six months or more into
their next tax year, we could also look to use
accountant’s projections using our form if this was
to increase further.
Although we could not push to 90% LTV, if the
applicant could finder a larger deposit we could
explore 75% LTV, assuming the property is of
standard build and subject to valuations.
BUCKINGHAMSHIRE BS
The society would be able to review this on a caseby-case basis. If the evidence is strong to support
that the increase income is sustainable and will
continue, then they could review to take the latest
years income.
More information would be required for the
sales team to refer to underwriting before the
decision in principle (DIP) is considered.
WEST ONE LOANS
We are willing to lend to self-employed applicants
and will ask for the latest two years’ SA302’s/Tax
Year overviews. However, we will only use the
latest year’s income of £61,000 for affordability
calculations, which means they will qualify for our
Extra range.
C AS E S I X
Gifted deposit
from a non-UK relative
first-time buyer is purchasing a £430,000
flat with a 15% deposit gifted by an aunt
who lives and works in the UAE. The aunt
is not a UK citizen or resident, and the buyer is
employed in the UK earning £41,000 a year.
While the buyer meets affordability
requirements, the source of deposit raises
concerns with some lenders. Verification of funds
held in a foreign account could create delays, and
anti-money laundering (AML) checks vary in
strictness. Some lenders have been uncomfortable
with a non-UK donor with no UK banking footprint.
A
UNITED TRUST BANK
Even with a 15% deposit, this first-time buyer
application would not pass UTB’s affordability
requirements.
In this example, the source of the deposit
would pose a significant problem, too. UTB
prefers sources of deposits to derive from the UK.
However, on occasions we have accepted oversees
deposits on referral.
That said, the UAE is in a high-risk jurisdiction
and would most likely be declined.
HARPENDEN BS
We can only accept funds from EU countries.
However, it may be possible to have this case
approved by our credit committee as lending
outside of policy. The applicant would have to be in
a strong position, and we would require full details
on the aunt.
TOGETHER
Together could proceed with this application
as the applicant is UK-based and receives a
UK GBP income. As with the other lenders,
the relevant source of deposit checks
would need to be undertaken in line with
policies.
However, if this could be verified then the
applicant could proceed with their mortgage
at a maximum 75% LTV, subject to valuations
and affordability.
BUCKINGHAMSHIRE BS
The society can take a family gifted deposit from
the aunt, but the source of the deposit will need
to be clear, with evidence of the build-up of funds,
which can sometimes be difficult with it being
overseas.
As long as the applicant can provided the
evidence required to satisfy this then it can be
considered, it is worth noting that sometimes the
documentation may need to be translated. The
society would provide what would be required
as evidence.
WEST ONE LOANS
We would accept a gifted deposit from abroad
provided it is in a UK bank account for the
completion of the transaction.
However, even if the gifted deposit is
satisfactory, the client would not qualify for a
residential mortgage with West One as the loan
would require an LTI multiple of 8.9, and the
applicant does not qualify for our uncapped LTI
range where we have a minimum household
income requirement of £50,000. ●
August 2025 | The Intermediary
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