You’re approached about a remortgage for a loan of £1.2m at 90% LTV.
The joint applicants have been employed in the same roles for more than five years, however they have a combined income of just over £225k and have one dependent.
Usually, the maximum loan on a 2-year fixed rate is £779,945 (at 3.4x income), and the maximum loan on a 5-year fixed is £1,010,919 (at 4.5x income).
Your customers have a lower income than the amount that’s usually accepted but you remember that we take the entire case and customers’ history into consideration. We also have no maximum loan size on selected products, so you approach your BDM for their advice.
The BDM discusses this case with a senior underwriter who, based on the customers’ profile and proposition, agrees as an exception to flex our usual criteria and use 5.37x income.
On this occasion, your customers are offered the £1.2m loan they wanted on 5-year fixed-rate terms.
Although some cases at first glance seem as though they won’t fit our criteria, it’s definitely worth having a conversation with us so we can dig a little deeper and see if we could help.
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