Type of Lending
Maximise affordability through the use of multiple income streams and enhanced lending up to 6x LTI.
The Borrower
The Borrowers have a diverse income profile including employed, self-employed, land and property, and pension income.
- Borrower 1 is a 55-year-old employed occupational therapist intending to work until 75. In addition, they receive income from multiple buy-to-let properties, evidenced by SA302 documentation.
- Borrower 2 is a 60-year-old self-employed engineer providing non-manual consultancy support and intends to work until age 80. They also receive occupational pension income from a previous employed role.
The Challenge
The borrowers found their dream forever home and needs a lender who can:
- take a flexible view of affordability up to 80% LTV
- consider 100% of multiple income streams across earned income, pension income and land & property income
- accepts income up to age 80 for employed and self-employed income
- enhance the affordability assessment to support higher income multiples.
The Solution
We were able to assess the case holistically, considering the strength of all income sources.
We considered:
- 100% of salary and verified land and property income supported via SA302
- Pension income to be included for affordability assessment
- Employed and self-employed income up to age 80.
The Outcome
As a result, Hodge were able to support:
- Up to 6x LTI
- Up to 80% LTV on capital interest basis
- Employed and self-employed incomes to age 80
- The case required a flexible approach to affordability to utilise multiple income sources and long-term income sustainability.
Why Hodge
This case highlights how Hodge supports borrowers in achieving their holiday let ambitions through flexible criteria and practical, common-sense lending.
The Hodge Holiday Let mortgage is designed to help first-time landlords take the first step, and support landlords with small portfolios to maximise both rental income and personal enjoyment of their properties.
