Residential Bespoke Case Studies

Application for loan of £388,333 at 75% LTV

• Applicants were capital raising £179,838 for home improvements, as they needed to adapt and extend their home due to disability. Prior to applying the applicants had obtained all planning consents, drawings and quotes for the work along with timescales.
• One applicant had only been a partner in a law firm for nine months. However they were previously an employee with the same firm and earning a similar level. We were able to get confirmation from the accountant of expected earnings and therefore we were happy to include their income as part of our assessment.

Application for loan of £1,275,000 at 85% LTV

• Applicants were capital raising £337,000 for home improvements as they were building a two story extension. They had obtained all planning consents, drawings and quotes for the work along with timescales.
• As an exception we agreed to lend at 50% interest only and 35% on repayment due to the high quality of the application, we also agreed to exceed our standard Loan to Value limits.

Application for loan of £322,500 at 83% LTV

• Applicants were capital raising £67,500 for the deposit on a buy to let property.
• We agreed not to deduct £1,417 per month school fees (payable for the next ten years) as a monthly outgoing for affordability as the applicants could evidence £180,000 in savings to cover these fees.

Application for loan of £1,314,495 at 75% LTV

• Applicants were capital raising £208,562 for home improvements on their residential property and to redeem their buy to let mortgage.
• When reviewing the case we could see that one applicant had an undrawn Self Invested Personal Pension (SIPP) and was old enough to access this if needed. By providing us with evidence of the SIPP balance we were able to include this as part of the total assessable income.
• We agreed to lend to age 75 with 60% on interest only basis and the remaining 15% on repayment.

Application for loan of £1,800,000 at 75% LTV                    

• The applicant held a senior position in a large bank and was paid a large salary as well as bonuses. The size of loan they wanted wouldn’t have been possible under our standard loan terms.
• When reviewing the case we were happy to include the average of 100% of their bonuses for the previous two years as part of the total assessable income, even though the bonuses varied each year. This was due to the applicant’s track record of bonuses at a similar level in previous years, demonstrating a sustainable source of income.

Application for loan of £391,500 at 90% LTV

• The applicant was in a role that paid an insufficient income (excluding bonuses) to secure the loan size they wanted under our standard terms.
• When reviewing the case we could see the applicant was able to evidence a track record of receiving bonuses and we were satisfied that the bonuses would continue to be earnt. Therefore we were able to include the average of 100% of their bonuses during the previous two years as part of the total assessable income, even though the bonuses varied each year.

Application for loan of £380,000 at 50% LTV

• The applicants were joint owners of a limited company but their household income was slightly less than required for our standard affordability assessment, due to the need for a short mortgage termon a capital and interest basis.
• When reviewing the case we could see the applicants both had an undrawn Self Invested Personal Pension (SIPP). By providing us with evidence of the SIPP balances we were able to include these as part of the total assessable income, even though the SIPPs hadn’t moved into income drawdown.

Application for loan of £265,000 at 70% LTV

• The applicant was in a role that paid an income (excluding overtime) that wouldn’t have been enough to secure the loan size they wanted under our standard terms.
• When reviewing the case we could see evidence of a track record of overtime payments, and were satisfied that it would be ongoing, meaning we were able to include this at 100% of their average income.

Application for loan of £1,249,500 at 85% LTV

• One of the applicants has only recently become self employed; less than two years ago. Their company is in the same industry they had previously been employed in. With this employment history they wouldn’t have been able to secure the loan on standard terms.
• When reviewing the case they were able to provide evidence that the company was performing well, even though it was relatively new. This included one years’ finalised accounts and the latest year’s net profit after tax (NPAT) and salary. On standard terms we would normally require evidence of dividends being received.
• We therefore used one year’s finalised accounts and the latest year’s NPAT and salary for our income assessment to achieve the loan amount required.

Application for loan of £922,500 at 70% LTV

• The applicant’s company’s previous year’s profits were slightly lower than normal. With this recent dip in profits they wouldn’t have been able to secure the loan on standard terms.
• When reviewing the case we were able to obtain evidence that the current year was on track to be equivalent to other normal years’ profits. The applicant was also able to give an acceptable reason for the one-off fall in profits.
• We therefore used the latest year’s net profit after tax (NPAT) and salary for our income assessment to achieve the loan amount required.

Application for loan of £335,000 at 81% LTV

• The applicant had only recently qualified as a Barrister. Being self employed and receiving an income that grows year on year, on standard terms the average income wouldn’t be enough to secure the loan they wanted.
• We only requested the latest year’s profit figure to be included in the application, because we also received documents to support that this level of profit would be ongoing.
• When reviewing the case we were able to use latest year’s profit figure in isolation for our income assessment, alongside the other supporting documents.
• Also, due to the high quality of the application as a whole we were able to apply a loan to income multiple of 5x their latest year's profit figure. A multiple not available on standard terms.

Application for loan of £605,000 at 85% LTV

• The applicant had been working as an umbrella contractor for less than 12 months but had experience and employment history of working in the same industry.
• We assessed the income by using the average of the last 3 months payslips after the umbrella deductions (umbrella margin, apprenticeship levy, employer NICs) along with the contract.

Application for loan of £272,000 at 85% LTV

• Two applicants recently returned to the UK after a period living abroad. One of them continued on an employed basis with their current employer but the other began working for their employer as a contractor. The role was fundamentally the same but on a day rate basis rather than the usual employed terms. This short length of time contracting doesn’t fit within our usual criteria, meaning on standard terms they wouldn’t be able to secure the loan they wanted.
• When reviewing the case we were satisfied that although one of the applicants was technically new to contracting their track record was sufficient. Also, even though they didn’t have a three year UK residential address history, as their credit score was good we were happy for their application to proceed.

Application for loan of £585,000 at 90% LTV

• Both applicants were on skilled worker visas and had lived in the UK for three and a half years. Applicant one had been an IT contractor for two years on a day rate of £600 (£156,000 gross per annum) and applicant two was employed on a basic salary of £63,500.
• As they had a good track record in the industries they worked in, affordability was excellent and the LTI was only 3.1x we were happy to apply an exception and proceed at 90% LTV. On standard criteria the LTV is capped at 75% for skilled worker visas.

Application for loan of £747,000 at 90% LTV

• The applicant had been a contractor for 10 years and had just returned to contracting after a seven month gap whilst on maternity leave. During the gap the applicant had lived off their savings.
• As the applicant had a good track record of contracting and the current contract had a similar day rate prior to the gap, we were happy to proceed with the loan requested.

Application for loan of £342,000 at 90% LTV

• Applicant one had worked in the TV and film industry for two years, working on multiple projects, all of which were on a contract basis and paid via PAYE. Applicant two was employed full time in a permanent position.
• We were able to evidence the TV work via P60s, P45s and HMRC summary of income to demonstrate consistency of earnings over the last two years. Plus we were able to use their current payslips to show the year to date earnings. We also had a copy of the current contract, therefore we were happy to proceed with the loan requested.

Application for loan of £963,000 at 90% LTV

• Applicant one was an Analyst for a large financial firm with a basic salary of £110,000 plus annual bonus circa £110,000. Applicant two was a Marketing Manager on a spousal visa.
• The loan was affordable on applicant one’s basic salary and using 50% of the latest year’s bonus over a 39 year term. Therefore we were happy to lend the amount requested.

Application for loan of £2,400,000 at 60% LTV

• The application was a like for like remortgage on an interest only basis. Applicant one’s basic salary was £240,000 and they received an annual bonus of £536,000.
• As the applicant had a financially dependent spouse and three children, we needed to use 75% of the bonus for the application to pass affordability. Due to the applicant’s track record of bonuses at a similar level in previous years we were happy to lend the amount required.

Application for loan of £1,800,000 at 75% LTV 

• The applicant held a senior position in a large bank and was paid a large salary as well as bonuses. The size of loan they wanted wouldn’t have been possible using our standard loan terms.
• When reviewing the case we were happy to include the average of 100% of their bonuses for the previous two years as part of the total assessable income, even though the bonuses varied each year. This was due to the applicant’s track record of bonuses at a similar level in previous years, demonstrating a sustainable source of income. 

Application for loan of £1,249,500 at 85% LTV

• One of the applicants has only recently become self employed; less than two years ago. Their company is in the same industry they had been previously employed in. With this employment history they wouldn’t have been able to secure the loan on standard terms.
• When reviewing the case they were able to provide evidence that the company was performing well, even though it was relatively new. This included one years’ finalised accounts and the latest year’s net profit after tax (NPAT) and salary. On standard terms we would normally require evidence of dividends being received.
• We therefore used one year’s finalised accounts and the latest year’s NPAT and salary for our income assessment to achieve the loan amount required.

Application for loan of £247,500 at 90% LTV

• The applicant had been a Production Manager for over six years with their current employer on a basic of £49,500, with no dependents and no commitments.
• Affordability was good, so we were happy to apply a loan to income multiple of 5x income.

  Application for loan of £480,000 at 56% LTV

• The applicant had been a Risk Manager for over five years with their current employer on a basic of £81,500 and received an annual bonus of £14,500 paid in the current tax year.
• To obtain the loan required we needed to apply a loan to income multiple of 5x income on 100% bonus. However, we only required 50% of the bonus to meet affordability, therefore we were happy to lend the amount required.

 Application for loan of £555,000 at 75% LTV

• The applicant was an Investment Banker and had only received one bonus with their current employer, however, they had a track record of bonuses with previous employers.
• The current employer confirmed in writing that the applicant was expected to earn almost an extra £30k in bonus at the next payment date (double what they had currently earned).
• Therefore, we were able to use this year’s bonus at 100% to support affordability and apply a loan to income multiple of 5x income.

Application for loan of £692,500 at 80% LTV

• The applicant worked for a Private Equity firm and had only resided in the UK for 18 months, therefore only had one year’s bonus with the current employer.
• As we were able to get a meaningful credit score despite the limited residency in the UK, we were happy to take 50% of the applicants most recent bonus at 5x Income.

 Application for loan of £1,295,000 at 85% LTV 

• One of the applicants owned and ran a successful insurance company. They had decided to pay themselves low dividends and the keep cash in the company bank account. The size of loan they wanted wouldn’t have been possible under our standard loan terms as their assessable income (salary plus dividends) would have limited the loan we could offer.
• When reviewing the case we were able to use the average of the last two years’ net profit after tax (NPAT) and latest salary to achieve the loan amount required.
• Due to the excellent affordability status of the applicants we were able to apply a loan to income multiple of 5x their combined income; which is higher than our standard terms.

Application for loan of £822,000 at 75% LTV

• Applicant one was an employed software engineer for seven years and applicant two was an employed director. They had a combined income of c£286,000. The applicants had used unsecured credit whilst undertaking home improvements and wanted to clear this as part of the remortgage.
• The applicants wanted a part repayment and part interest only mortgage. We agreed to lend 60% LTV on the interest only part and the remainder on capital and interest up until applicant two's 75th birthday.

Application for loan of £707,000 at 59% LTV

• The applicant had been employed as a Research Director for three years earning £166,000 and wanted to do a like for like remortgage.
• As the applicant’s occupation meant it was plausible to work until age 75, and they were going to downsize in five years’ time we agreed to stress affordability on interest only and lend to age 75.

Application for loan of £1,800,000 at 75% LTV 

• The applicant held a senior position in a large bank and was paid a large salary as well as bonuses. The size of loan they wanted wouldn’t have been possible using our standard loan terms.
• We were happy to include the average of 100% of their bonuses for the previous two years as part of the total assessable income, even though the bonuses varied each year. This was due to the applicant’s track record of bonuses at a similar level in previous years.

 Application for loan of £520,000 at 89% LTV

• Applicant one had been a self employed dentist for two years. Applicant two was an employed scientist for four years. They had no dependents and a credit card payment of £65 per month.
• Applicant one’s first year’s income was impacted by Covid and therefore significantly lower than the latest year.
• As the applicant could provide the last six remittances slips which when annualised would mean the current tax year will be significantly higher, we were happy to use the latest year in isolation.

Application for loan of £500,000 at 50% LTV

• The applicant had been an employee of a limited liability partnership (LLP) for a number of years and around 18 months ago became a self employed partner in the firm. The LLP was well established and profitable. On standard terms the applicant would need three years’ accounts to assess in order to apply.
• When reviewing the case we agreed to include the applicant’s profit share for our assessment as we received confirmation from the finance director of the previous and expected earnings along with a P60 to evidence the level of earnings before becoming an equity partner.

Application for loan of £335,000 at 81% LTV

• The applicant had qualified as a Barrister six months ago and had self employed and pupillage income.
• We were able to use the certificate from Chambers to confirm income earnt along with anticipated future earnings, and therefore, used the latest year’s profit figure in isolation for our income assessment.

Application for a loan of £245,000 at 90% LTV 

• Sole applicant had been a self employed dentist for nine months. They were previously employed whilst completing their training. They had no dependents and no commitments.
• The applicant was purchasing a flat with a gifted deposit from parents overseas.
• As the applicant could provide remittance slips for the last nine months showing an upward trend, we were able to average and annualise the income and lend the loan required. 

Application for a loan of £520,000 at 89% LTV

• Applicant one was a dentist with pre-settled status and had been self employed for two years. Applicant two had the permanent right to reside in the UK and was an employed scientist of 4 years. They had no dependents and a credit card payment of £65 per month.
• Applicant one’s first year’s income was impacted by Covid and therefore significantly lower than the latest year.
• Our standard criteria for pre-settled status applications are restricted to a maximum of 75% LTV. However, due to the strength of the application we agreed an exception.
• Also, the applicant could provide the last six months remittances slips which when annualised would mean the current tax year will be significantly higher. We were happy to use the latest year in isolation.

Application for a loan of £245,000 at 90% LTV 

• Sole applicant had been a self employed dentist for nine months. They were previously employed whilst completing their training. They had no dependents and no commitments.
• The applicant was purchasing a flat with a gifted deposit from parents overseas.
• As the applicant could provide remittance slips for the last nine month showing an upward trend, we were able to average and annualise the income and lend the loan required. 

Application for a loan of £822,000 at 75% LTV

• Applicant one had been an employed software engineer for seven years and applicant two was an employed director. They had a combined income of c£286,000. The applicants had used unsecured credit whilst undertaking home improvements and want to clear this as part of the remortgage.
• The applicants wanted a part repayment and part interest only mortgage. We agreed to lend 60% LTV on the interest only part and the remainder on capital and interest up to applicant two's 75th birthday.

Application for loan of 213,000 at 85% LTV

• The applicant was about to become a partner in a GP practice. They’ve been employed with the practice for over three years and were guaranteed at least their basic salary in the first year. After that they would receive a profit share.
• Although the applicant was newly self employed, we were happy to proceed with the request based on the history of employment in the practice.

Application for loan of £259,250 at 85% LTV

• The applicant was a doctor and had recently began a contract to cover a period of maternity leave. They’d only been contracting for three months at the point of application.
• Due to the nature of the contract we were aware that it may not be renewed but proceeded as proposed. This was because the underwriter was confident that an alternative contract/employment could be obtained at a similar level due to their profession and experience.

Application for loan of £564,000 at 75% LTV

• The applicant was previously an employed GP but this ceased when they began self employed locum work.
• We obtained evidence of the income earned to date, as well as previous earnings, so annualised the locum income and used that for assessment.

Application for loan of £720,000 at 75% LTV

• Applicant one was employed as a surgeon with the NHS and also completed private work through a limited company. Applicant two was employed as a practice manager in applicant one's company.
• We used the latest years’ net profit after tax figure (in addition to employed income) to calculate the assessable income.

Application for loan of £520,000 at 89% LTV

• Applicant one had been a self employed dentist for two years. Applicant two was an employed scientist for four years. They had no dependents and a credit card payment of £65 per month.
• Applicant one’s first year’s income was impacted by Covid and therefore significantly lower than the latest year.
• As the applicant could provide the last six remittances slips which when annualised would mean the current tax year will be significantly higher, we were happy to use the latest year in isolation.

Application for a loan of £245,000 at 90% LTV 

• Sole applicant had been a self employed dentist for nine months. They were previously employed whilst completing their training. They had no dependents and no commitments.
• The applicant was purchasing a flat with a gifted deposit from parents overseas.
• As the applicant could provide remittance slips for the last nine month showing an upward trend, we were able to average and annualise the income and lend the loan required. 

Application for a loan of £500,000 at 50% LTV

• The applicant had been an employee of a limited liability partnership (LLP) for a few years and around 18 months ago became a self-employed partner in the firm. The LLP was well established and profitable.
• When reviewing the case we agreed to include the applicant’s profit share as we received confirmation from the finance director of the previous and expected earnings along with a P60 to evidence the level of earnings before becoming an equity partner.

Application for loan of 213,000 at 85% LTV

• The applicant was about to become a partner in a GP practice. They have been employed with the practice for over three years and were guaranteed at least their basic salary in the first year. After that they would receive profit share.
• Although the applicant was newly self employed, we were happy to proceed with the request based on the history of employment in the practice.