Not every joint application is straightforward. When two borrowers apply together, they won’t always share the same tax position. One applicant may be a basic-rate taxpayer, while the other falls into a higher-rate band.
Applying a single rental calculation across the whole application doesn’t always reflect those differences.
That’s why CHL Mortgages uses a blended ICR approach for joint applications involving both basic-rate and higher-rate taxpayers.
By taking account of each borrower’s tax position, we’re able to build a more balanced view of the case and assess the application in a way that better reflects the borrowers behind it.
It’s another example of how understanding the detail behind a case can help create more options for landlords.