The Intermediary – May 2025 - Flipbook - Page 67
B RO K E R B U S I N E S S
Case clinic
couldn’t offer to 85% or greater LTV, we could
accept 75% if the property is of standard build.
BUCKINGHAMSHIRE BS
We would need to understand the reason for the
inconsistency. As the society would look to use an
average over the last two years, they would need
to demonstrate the last two years have improved
and have been quite consistent.
C AS E T WO
Residential mortgage,
new employment
single applicant earning £42,000 annually
recently changed careers. They are still
within their probation, having been in the
role for two months at the time of their mortgage
application for a £220,000 flat with a 10% deposit.
Although their overall employment history is
stable, lenders have been hesitant due to the
recent career switch and the short time in the role.
A
TOGETHER
We accept applications from individuals in a
probationary period and within their first two
months of a new role. We would check that they
have 12 months’ continuous employment, and
with this we could proceed with an application.
Although Together could not stretch to 90% LTV,
if the applicant had a larger deposit, we could
consider 75% LTV.
UNITED TRUST BANK
At UTB we require applicants to be in their
new employment for a minimum of three
months, as long as they can demonstrate 12
months of continuous employment and are out
of any probationary period. We will consider
an application where this requirement would
be satisfied soon, if we receive the necessary
evidence before the mortgage offer stage.
If an applicant does not have 12 months’
continuous employment history, they must have
spent six months in their current role and not still
be on probation.
HARPENDEN BS
We can consider an applicant within their
probation period, but only when they are in the
same job or industry. As this client has changed
careers, we will need to wait until they have
completed their probation before we can consider.
Also, please note our maximum LTV is 85%.
BUCKINGHAMSHIRE BS
The society can consider this case, but would not
be able to complete until the probationary period
has been completed and passed. Partly the reason
for this is that there is a change to not just the job
but the role, and a mortgage indemnity guarantee
(MIG) would be required with it being 90%.
The case can proceed through to offer, but a
condition of the offer would be that it cannot be
completed until evidence is provided to confirm
that the probationary period has passed.
C AS E T H R E E
Recently incorporated
limited company
wo business partners earning £50,000 and
£46,000 through their own employment
want to purchase a £400,000 buy-to-let
(BTL) property through a newly formed limited
company. Although they have experience as
individual landlords, the limited company is only
three months old at the time of application.
They set up the company to take advantage of
tax efficiencies, but the lack of trading history
means most mainstream lenders are unwilling to
consider the application. Furthermore, one of the
partners has a minor default from four years ago,
which has created additional lender hesitancy
when paired with the new company structure.
While the deposit of 25% is readily available,
the corporate ownership and short history of the
company have proven to be sticking points.
T
UNITED TRUST BANK
The limited company would need to be a special
purpose vehicle (SPV) with the relevant standard
industrial classification (SIC) codes relating
to property, as we will not lend to a general
trading company for BTL. If this is met, then we
would gladly consider an application subject to
affordability, ignoring the minor default.
We only consider defaults or County Court
Judgements (CCJs) over £300 that have occurred
in the last two years, and these may impact
an application. →
May 2025 | The Intermediary
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