The Intermediary – June 2025 - Flipbook - Page 72
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C AS E ON E
Gifted deposit and
If affordability is still too tight, the purchaser
could either increase the gifted deposit to 20%,
add family members as Joint Borrower Sole
Proprietor (JBSP), or both! The gifted deposit side
of things is totally within our comfort zone and
doesn’t pose any issues.
irregular income
UNITED TRUST BANK
first-time buyer earning approximately
£28,000 per year in a commissionbased sales role is looking to purchase a
£220,000 flat with a 15% deposit gifted by their
parents. Although their gross income is technically
sufficient, their monthly earnings fluctuate
significantly.
The applicant has had only one full year of
employment in their current role, and the majority
of their commission is not guaranteed.
This inconsistency has made affordability
assessments tricky, particularly with lenders that
require a two-year commission history or only
consider base salary.
A
SUFFOLK BUILDING SOCIETY
Commission-based roles aren’t a no-no as far as
we’re concerned. We would ask how much of the
commission can be evidenced over the year to
get a better understanding of the split between
commission and guaranteed salary, if any. Our
policy is to accept 50% of the commission in
affordability calculations.
However, if this is a commission-based role in
a commission-based industry, and we need more
than 50% to make the numbers stack up, we will
try to take a positive, common-sense approach.
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The Intermediary | June 2025
Unfortunately, UTB would not be able to help
this applicant as we have a £40,000 per annum
minimum income requirement for first-time buyer
applications. Even without this minimum income
requirement we would not be able to offer the
mortgage they needed due to maximum loan-toincome (LTI) restrictions.
TOGETHER
This applicant would certainly be able to apply
with Together. Although we could not get to the
85% loan-to-value (LTV) needed, we could consider
the loan at 75% LTV with confirmation they have
been in employment for 12 months continuously.
With regard to the bonus, if it was included on
all payslips provided and evidenced as consistent
via the year-to-date calculation, we could consider
using this towards their affordability. The gifted
deposit would also be no issue for Together.
BUCKINGHAMSHIRE BS
The society could look to consider using a
percentage of the bonus income, but it would have
to be 50%.
The other option that could be considered is
if the parents could support on a JBSP until the
applicant had a stronger track record of the bonus
payments being received.
