The Intermediary – July 2025 - Flipbook - Page 63
B RO K E R B U S I N E S S
Case clinic
down to the figures we came to after running the
affordability calculator on this one.
BUCKINGHAMSHIRE BS
The deductions would need to be deducted as
commitments in the affordability, but the society
does not apply difference stress-testing across our
products. The case would need to fit affordability,
and the society will review three months of bank
statements to ensure all commitments have been
considered. The other option could be a JBSP
mortgage if the parents are willing to help support
affordability over a 5-year period.
STAFFORD BS
In this case, where the deductions are impacting
net income, we focus on true affordability rather
than income multiples. Based on our assessment
of net monthly income and assumed living
costs, the applicant could afford the required
loan amount over various terms. We also check
affordability under potential interest rate increases
to ensure long-term sustainability.
TOGETHER
Together could look to support this applicant via
our stated expenditure tools. When confirming
initial outgoings our system will use ONS figures
as a guide. If this falls below what is required,
we could then look to use stated expenditure,
whereby the applicant can confirm their actual
outgoings with proof. This provides a more flexible
view on if the loan is affordable, and we could look
to get a maximum 75% LTV on their loan.
UNITED TRUST BANK
UTB does take into account any deductions on an
applicant’s payslip other than tax and National
Insurance (NI) contributions. This is not limited to
pension contributions or student loan repayments.
This will reduce the useable income.
During the application process, they disclosed
a historical County Court Judgement (CCJ) from
five years ago which had been satisfied but did not
appear on their current credit file. The declaration
caused some lenders to request evidence and
explanation, and some still considered it a risk
factor, especially as the client had no formal
documentation to prove it had been satisfied.
WEST ONE LOANS
This loan would be affordable based on loanto-income (LTI) multiple being under five-times
income. West One also commonly assists in cases
where the applicant has CCJs, and most of the time
we can discount CCJs if under £500. However, this
is a unique case, in that the CCJ does not show
up on their credit file. We’d have to know why it
does not reflect, with proof that the CCJ has been
satisfied. If these are provided and satisfactory, we
are likely to lend to the applicant.
SUFFOLK BS
An LTV of 90% is MIG territory, so we’d need
to understand further regarding the CCJ – the
amount, reason for the CCJ and the date it was
satisfied. Due to our manual underwriting, if
we were comfortable with this, we could take a
view. We’d be looking to see if the credit history
had been clean since; the fact the customer has
declared this up front, despite not being initially
clear on the credit file, builds trust. The maximum
we’d lend would be 4.49-times income.
BUCKINGHAMSHIRE BS
The society can look to support, but the applicant
would need to provide details as to why the CCJ
occurred. The society has a number of options
from 75% LTV to 95%, but if the applicant is
looking for 90% the CCJ cannot have been
outstanding in total in the last three years, with no
other CCJ registered in the last two years.
STAFFORD BS
C AS E F I V E
Historical CCJ without
formal documentation
A
n applicant earning £47,000 a year is
applying for a mortgage on a £260,000
home with a 10% deposit.
While this CCJ no longer appears on the credit file,
we would need full details before proceeding. As
with any declared adverse credit, we would require
documentation confirming the CCJ was satisfied
and an explanation of the circumstances. Without
this information, we could not proceed due to the
unresolved risk.
TOGETHER
If the applicant has had a clear standing for the
past 36 months, meaning the CCJ has been paid
July 2025 | The Intermediary
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