Case Studies

Buy to let mortgage for contractors

We take a more human approach to underwriting, to build a truer picture and reach a fairer outcome. We design products that are easy to understand and simple to place. We strive to make each interaction you have with us easier than the one before. And we share valuable insight and expertise that give you an edge and build your reputation.

That’s why you’ll always find us with our doors and our minds wide open. Ready to challenge convention, read between the lines and see the story behind the numbers. We will find a place for your case with a path to success for your client and your business.

61-year-old, Carol, wanted to buy her ex-husbands share of their home and let the property out to tenants

Carol also wanted to raise enough capital to put towards a new home to live in

She needed a lender that would lend to a first-time landlord

She was a day rate contractor and had failed a credit score with two high street banks


There were several details that made this case interesting. Carol had already failed a credit score with two high street banks, with no easily identifiable reason why on her credit record.

In order to release enough equity to put down a deposit on her new home, and have additional funds to buy Lee’s share of the house, she needed an 80% LTV mortgage.

However, many let to buy lenders restrict capital raising for use as the deposit on the ongoing residential purchase.

Not only did she need a lender that would allow capital raising for other purposes, but also one that would lend to a first-time landlord.

For her residential purchase, as the term took her beyond her state retirement age, she needed a lender that would consider her employment income beyond her state retirement age, as well as her pension income.

In addition, she wanted one lender that was able to offer the let to buy remortgage and the ongoing residential purchase.


Mortgage Adviser, Luke Atkinson of The Mortgage Hut, knew this was a case for a specialist lender.

Our underwriters were able to offer Carol the let to buy remortgage that she needed to put down a deposit to purchase a new home and buy her ex-husband’s share of the house. We were also able to offer her a mortgage on her new home.

The let to buy mortgage was a 5 year fixed rate, with a rental calculation of 140% x the pay rate.

For the onward residential purchase, our underwriters considered Carol’s occupation and were happy that this would be sustainable beyond her state retirement age.

In addition, as Carol was already drawing a public sector pension, we used 100% of this income for the affordability calculation. This enabled her to demonstrate the affordability she needed to buy the home she wanted and retain ownership of her ex-marital property as an investment.

Luke Atkinson at The Mortgage Hut

“This was a good example of a case that needed a lender to take a common-sense approach. There were lots of factors to consider, but there was also a plausible story to explain the client’s circumstances and Pepper Money’s underwriters were able to deliver a solution that met all of her requirements.”


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