The Intermediary – July 2025 - Flipbook - Page 64
BUY-TO-LET
Case Clinic
or resolved in this period, Together can look into
offering them a mortgage on our lowest price
product. We allow up to a maximum of three
demerits, including CCJs, for applicants in the
previous 12 months to qualify for certain products,
so as long as all other credit history fell within
this range we could look to support them with a
mortgage up to 75% LTV.
UNITED TRUST BANK
UTB will ignore any historical CCJs over two or
three years old – product dependent – regardless
of when registered and the CCJ amount. We may
seek clarification on the amount of the CCJ for our
records. If it is an acceptable amount, no further
evidence would be required.
C AS E S I X
Residential buyer on
maternity leave
amount, but we’d work on the £48,000 if that’s
what they’re returning to.
BUCKINGHAMSHIRE BS
The society would need to understand when the
applicant is returning to work and what terms
they will be going back to. If the applicant is not
due to return within the next three months, we
would need to see what savings they have to help
support if they were not to return. The society
could consider a joint borrower sole proprietor
mortgage if the parents are able to support, to
help with the affordability while the applicant is on
maternity leave.
STAFFORD BS
For applicants in a situation like this, we’re happy
to assess affordability based on their confirmed
return-to-work income. We would ask for a letter
from the employer confirming the return date
and the expected salary, including any agreed
change in hours. If childcare costs will apply once
back at work, we would also factor those into the
affordability assessment.
TOGETHER
client earns £48,000 annually and
is currently on maternity leave. She
has applied for a mortgage to buy a
home worth over £260,000. She has employer
confirmation of her return-to-work date, but her
current income is based on statutory maternity
pay. Some lenders won’t assess future affordability
based on post-maternity salary, while others
require written confirmation of full-time return
and job security.
A
Together would calculate her income based on
what she received at the time of completion. If this
was statutory maternity pay, we could use this on
the affordability calculation. If a return-to-work
date was set, with the first payslip received before
completion, Together could use the normal salary
income. This would be to protect the applicant’s
affordability during the time of the new loan just
in case they were not to return to work for any
reason. While Together could not lend 90% LTV,
we could potentially help with 75% LTV.
WEST ONE LOANS
We will be able to help the applicant on the
following conditions: they will need to provide a
letter from their company’s HR stating the date of
return (must be within six months), a confirmation
of her role, and employed income upon return to
work. While she meets the affordability criteria
based on previous annual earnings, we will require
a second applicant, such as a partner or spouse, to
consider the mortgage.
SUFFOLK BS
We’d work using the applicant’s return-to-work
salary and hours, their pay, and their start date.
We’d also need evidence of savings, or how they
intended to cover any shortfall in income while
on maternity leave. Maximum lending would be
4.49-times, so slightly short of the required loan
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The Intermediary | July 2025
UNITED TRUST BANK
UTB will require a letter from the employer
confirming when the applicant is due to return
to work full-time post-maternity leave, and the
returning salary. We will then assess the remaining
length of maternity leave, and the income received
in that period. For full salary to be considered to
support affordability, the applicant will need to
have already returned to work full-time, otherwise
we will only use the lowest income received in the
current period before returning to work.
In some cases, there may not be any useable
income to support the application if the applicant
exercises months nine to 12 of maternity with
no pay from the employer and no statutory pay.
However, if there are sufficient savings to cover
the full salary that would be received, we may still
consider using the full salary. ●
