Top Tip Tuesday talks Bespoke agreed cases

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. We were also able to agree to exceed our standard loan limits, due to the high quality of the application as a whole.

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.
  • 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.

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.
  • We agreed to lend at 4.84 x income with 50% interest only and 35% on repayment due to the high quality of the application as a whole, we also agreed to exceed our standard loan limits.

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

  • Applicant was capital raising £33,750 for home improvements, 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 5 x income.

For enquiries to be considered they must meet the below requirements:

  • One applicant must have a minimum income of £40,000
  • Applications up to 90% ltv considered
  • Applicants must fit our clean credit profile
  • Must be applicants main residential home (help to buy scheme excluded)
  • Minimum loan size £150k
  • Applicants must be paid in GBP
  • The property must fit our standard property criteria
  • The deal mustn’t exceed 5 x loan to income

We can also consider cases outside of our normal loan to value limits:

  • 90% – £1.5m
  • 85% – £2m
  • 80% – £2.25m
  • 75% – £2.5m
  • 60% – £2.5m

To access Bespoke cases must be discussed with your BDM first who will  then provide details on then how to proceed to a Bespoke AIP.