The Intermediary – June 2025 - Flipbook - Page 74
B RO K E R B U S I N E S S
Case clinic
TOGETHER
C AS E FOU R
Unencumbered
foreign property
Together could lend to these applicants at 75%
LTV – our max LTV – assuming the property
was of standard build. The normal compliance
will be done via solicitors for source of funds,
but this would not affect our ability to lend to
these applicants.
BUCKINGHAMSHIRE BS
couple earning a combined £130,000
annually wants to buy a £600,000 home
with a 10% deposit, intending to use
equity from a mortgage-free property they own
overseas as part of the deposit.
While their UK income meets affordability,
difficulties arose when they attempted to release
the equity abroad. Lenders have questioned the
liquidity and timing of the funds being transferred
from the foreign sale.
Additionally, currency conversion and
international anti-money laundering (AML)
compliance have created a bottleneck, leaving the
couple’s offer at risk of falling through while they
wait for international documentation.
A
SUFFOLK BS
With our experience in the expat mortgage market,
we’re familiar with the complex nature of dealing
with monies in different countries and currencies.
This is something we may be able to lend on, but
we would require evidence that the couple had
links to the country in which the overseas property
is based – such as prior employment there or
holding that country’s nationality. We would also
require solicitors to fully evidence the funds trail.
Finally, the overseas country would have to
be one not deemed as high risk, sanctioned or
currently war-torn or in conflict.
If the couple were able to tick these boxes,
then this is something that we would be happy to
lend on.
UNITED TRUST BANK
UTB would consider this application in principle
subject to DIP, affordability and adequate checks in
relation to the source of the deposit.
Factors would include the country of origin
for the deposit and the risk grading of that
jurisdiction, along with how long the property
overseas has been owned and how it had come to
be mortgage-free.
Lender and solicitor checks would be required
for the source of deposit to be deemed acceptable,
and the deposit would need to be present in a UK
bank account.
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The Intermediary | June 2025
The society would not be able to consider this case
due to the nature of the deposit.
If the property had been sold and the deposit
was held in a UK bank account and satisfactory
documentation could be provided to confirm the
source of deposit, it could be considered.
C AS E F I V E
BTL remortgage with
below-market rent
n experienced landlord earning £40,000
annually aims to remortgage a £300,000
buy-to-let property, originally purchased
five years ago, now valued at £400,000.
The rental income, however, is just £950 per
month, well below market rate.
Despite strong equity in the property, the rental
income does not meet modern stress tests for the
requested loan amount.
The tenant has been in place for many years
under an old lease, and the client does not want to
raise the rent.
Multiple lenders have declined the case, citing
insufficient rental cover, even though the applicant
has never missed a mortgage payment.
A
SUFFOLK BS
Unfortunately, this isn’t a case we could lend on,
due to the requirement for top-slicing.
UNITED TRUST BANK
UTB would also require the £950 per month rental
income to meet affordability requirements.
However, although we stress test our 2-year
and 3-year fixed rate products, we don’t stress
test our 5-year fixed rate products. There could
be an opportunity on the 5-year product to meet
affordability requirements. Had this scenario been
flipped, and the rental income received been well
