The Intermediary – June 2025 - Flipbook - Page 73
B RO K E R B U S I N E S S
Case clinic
BUCKINGHAMSHIRE BS
C AS E T WO
Recent graduate, short
employment history
24-year-old recent graduate has just
started a role in a marketing firm with a
£32,000 salary and is keen to purchase
a £200,000 property with a 5% deposit under
a Government-backed scheme. Despite a good
credit record and a permanent contract, the
applicant has only been employed for six weeks.
Several lenders have been unwilling to proceed
without a longer employment history or a passed
probationary period. The minimal deposit has
further narrowed their lender options, especially
when factoring in their student loan deductions
and monthly commitments.
A
SUFFOLK BS
Having landed a great job, it’s commendable that
this graduate is already keen to get on to the
property ladder. However, we’d suggest they hold
off on purchasing just for a little while.
We would need them to have passed their
probationary period due to the high LTV and
their limited employment history, and as they’ve
experienced, many other lenders are like-minded.
However, if they were able to get a larger deposit
together and have a longer employment history,
they would have so many more mortgage options
available to them.
UNITED TRUST BANK
UTB does not consider purchase applications
under Government-backed schemes. In addition,
the applicant would require a minimum of six
months of employment in their current role if
unable to evidence previous employment history.
The society would only be able to consider this
if there was an option of JBSP, and the applicant
would be looking for lending at 95% LTV.
Mortgage Indemnity Guarantee (MIG) would be
required and would be an issue with the applicant
only just starting their role, and would require a
longer track record of employment.
JBSP, however, would be restricted to 90% LTV
so would need a slightly higher deposit.
C AS E T H R E E
Over-exposure to rental
properties
n experienced landlord with six properties
in their portfolio hopes to purchase a
£275,000 buy-to-let (BTL) property with a
25% deposit.
Their personal income is £40,000, and their total
rental income is around £50,000 annually.
However, several of the properties were
mortgaged at relatively high LTV ratios, and the
client has recently refinanced two of them. Their
overall exposure to the BTL market has led some
lenders to view their portfolio as high-risk.
A
SUFFOLK BS
Generally, we don’t consider background
properties in our assessments; however, we’d
be unable to accept this case as we don’t lend
to portfolio landlords. If we could assist, then
the background buy-to-lets wouldn’t be a
consideration for our underwriting.
UNITED TRUST BANK
TOGETHER
UTB would welcome this application subject
to decision in principle (DIP), affordability
and adequate stress-testing of the existing
background portfolio.
Together could consider this applicant if they
have had 12 months continuous employment in
any form. Applicants in a probationary period are
accepted in line with standard criteria, as long as
at least one payslip has been provided.
Although we could not stretch to 95% LTV,
we could look at funding this case with a
larger deposit at 75% LTV, if the property is of
standard build.
Together could consider lending to this applicant,
and we would first of all check the Income Credit
Report on the application. If this passed, and the
credit profile was satisfactory, then we could
proceed. As long as we could get the relevant
charge required over the subsequent property,
→ would not be an issue.
lending on this case
TOGETHER
June 2025 | The Intermediary
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