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.
• 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, so we were able to include their income as part of our assessment.

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 property.
• When reviewing the case we could see that one applicant had an undrawn Self Invested Personal Pension (SIPP). By providing us with evidence of the SIPP balance we were able to include this as part of the total assessable income, even though the SIPP hadn’t moved into income drawdown.
• We agreed to lend to age 75 with 60% on interest only basis and the remaining 15% on repayment.

Application for loan of £318,750 at 80% LTV

• Applicant was capital raising £33,750 for home improvements on a new kitchen, bathroom and driveway.
• Applicant has been a Sales Manager for five years with the same employer, and had a two year track record of receiving large commission payments. We agreed to use 70% of the commission at higher than our standard loan limit 5x income.

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 £922,500 at 70% LTV

• The applicant had a large income as well as commonly receiving bonuses. They applied to borrow more than would have been possible under our standard loan terms.
• The applicant was able to evidence a track record of receiving bonuses and we were satisfied the bonuses would continue to be paid at a similar level, demonstrating a sustainable source of income. Therefore we were happy 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.
• Also, due to the high quality of the application as a whole, we agreed to increase the loan to income and apply a multiple of 4.7x total assessable 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 term.
• 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 meaning we were satisfied 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 for their employer as a contractor for less than 12 months. The role was fundamentally the same as their previous role 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 able to see they had a history of contracting and previously had been contracting at the same employer on a PAYE basis. Based on the applicant’s experience in their industry and employment history we were happy to include these recent years’ income as part of our assessment.

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 £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 £1,600,000 at 75% LTV

• The applicant was not selling their current property as part of the purchase of their new property. They intended to rent it out and they had experience of letting properties. The size of loan they wanted wouldn’t have been possible under our standard loan terms as the mortgage payments on the unsold property would be deducted as part the affordability assessment.
• When reviewing the case we received satisfactory confirmation of the achievable rent for the current property. By assessing the affordability of the proposed loan by using our discretion on the outgoings as well as taking into account the property letting experience we were able to ignore the mortgage payments on the unsold property.

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 their excellent affordability status of the applicants, we were able to apply a loan to income multiple of 5x their combined incomes; which is higher than our standard terms. 

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 £1,100,000 at 85% LTV

• One of the applicants had been a self employed medical professional for 20 years and the other was a senior civil servant. The applicants’ profiles were strong as they had a combined income of c£350,000 as well as other assets including two BTL properties. The applicants wanted a part repayment and part interest only mortgage. However, the size of loan they wanted wouldn’t have been possible under our standard loan terms, as we only lend up to 75% LTV where any element is on an interest only basis.
• We were able to apply our enhanced part and part proposition. This led to us agreeing to lend 50% LTV on the interest only part and the remainder on capital and interest. We agreed exceptions to our usual LTV tiers and the minimum equity at the point of application for a combined 85% LTV.

Application for loan of £720,000 at 90% LTV

• The applicant was a director of a multinational on a salary of over £200,000 but had not been in the role long. The size of loan they wanted wouldn’t have been possible under our standard loan terms as the application exceeded our typical LTV tiers.
• We could see it was a high quality application. Their previous employment history made us happy that having only recently started their current role wouldn’t adversely impact our assessment. 

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 their 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 £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 £1,100,000 at 85% LTV 

• One of the applicants had been a self employed medical professional for 20 years and the other was a senior civil servant. The applicants’ profiles were strong as they had a combined income of c£350,000 as well as other assets including two BTL properties. The applicants wanted a part repayment and part interest only mortgage. However, the size of loan they wanted wouldn’t have been possible using our standard loan terms, as we only lend up to 75% LTV where any element is on an interest only basis.
• We were able to apply our enhanced part and part proposition. This led to us agreeing to lend 50% LTV on the interest only part and the remainder on capital and interest. We agreed exceptions to our usual LTV tiers and the minimum equity at the point of application for a combined 85% LTV; above our standard loan limits.

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 £1,100,000 at 85% LTV

• One of the applicants had been a self employed medical professional for 20 years and the other was a senior civil servant. The applicants’ profiles were strong as they had a combined income of c£350,000 as well as other assets including two BTL properties. The applicants wanted a part repayment and part interest only mortgage. However, the size of loan they wanted wouldn’t have been possible using our standard loan terms, as we only lend up to 75% LTV where any element is on an interest only basis.
• We were able to apply our enhanced part and part proposition. This led to us agreeing to lend 50% LTV on the interest only part and the remainder on capital and interest. We agreed exceptions to our usual LTV tiers and the minimum equity at the point of application for a combined 85% LTV.

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 even though they had not been self employed for three years.