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Bespoke underwriting approach for self-employed Professionals from Tipton

24 May 2017

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Refreshing approach from Tipton around underwriting for professionals. 

Professional Partnerships 

Partners in professional partnerships do not need to provide full accounts to support their application. Where the case is 85% or below loan to value, they will underwrite against an income reference supplied by the partnership’s accountant, a senior partner or practice manager. 

The following professions are commonly established on a partnership basis:

  • Qualified medical doctors and surgeons;
  • Dentists;
  • Solicitors;
  • Barristers in chambers;
  • Veterinary surgeons;
  • Qualified architects;
  • Qualified accountants; and
  • Chartered surveyors. 

Self-employed dentists 

They will underwrite applications from self-employed dentists on the following criteria:

  • The maximum mortgage amount cannot exceed £450,000;
  • The maximum loan to value is 85%;
  • Your customer must have been employed by their current practice for a minimum of six months (monthly pay schedules to be provided);
  • They will require a Professional Partners reference from the Practice Principle confirming the Unit of Dental Activity target and your customers earnings to date. 

They can also consider applications where your customer is employed by two practices, however they will be subject to Credit Committee approval. 

Here are a couple of case studies that you may find useful. 

Case study One 

Ms D was a qualified solicitor for eight years. 

In the last 12 months Ms D had been promoted to partner of the practice. As a result she changed her employment status from PAYE to self-employed. Her broker contacted us as her employment status change took place in the year leading up to applying for a new mortgage. 

A mortgage was agreed for Ms D and underwriting was concluded based on a reference supplied by the senior partner within the practice. 

Case study Two 

Mr T was a qualified vet who had been based in the current practice for 12 months. 

Although Mr T was employed on a self-employed basis we were able to agree a mortgage with allowable income being verified through a reference completed by the Practice Principle. 

For more information visit their website here.

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