Portfolio Landlords Accepted
Background Portfolio Requirements
– No maximum LTV for the overall portfolio
– A minimum rental stress of 145% at 5%
Portfolio Landlord Criteria
– No limit on the amount of lending with Aldermore Bank
– No limit on the size of existing portfolio with other lenders
Additional Document Requirements
– Portfolio Schedule – All cases
– Business Plan – All cases
– Cashflow Statement – All cases with 11 or more mortgaged BTL’s with Aldermore
– Asset & Liability Statement – All cases with 11 or more mortgaged BTL’s with Aldermore
* Lender will accept client versions so long as covers the lenders minimum requirements
Commercial Investment / Semi Commercial – 140% cover required on C&I basis and 160% cover on Interest Only basis
If 3 year fixed rate – then calculation is decided on the higher of product or revert rate
For Limited Companies – use 125%
Commercial Owner Occupier – 165% on both C&I and Interest Only. </strong> Net Operating Income (NOI) to provide coverage at 165% at the pay rate (higher of the product or revert rate if a fixed rate product if selected)
Portfolio rental stress is at 5% – can consider a rental boost if falling short on rental income for portfolios.
BTL rental calculation has a 10% rent increase on a 5 year fixed and can consider top slicing
If the individual stress rate for the application is below the portfolio stress of 5%, the lower stress rate will be factored into the overall assessment of the portfolio.
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Single unit properties
Individuals: – 145% for a higher or additional rate tax payer (120% including use of surplus income).
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate – otherwise, pay rate.
125% for a basic rate tax payer (110% including use of surplus income).
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate – otherwise, pay rate.
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HMO’s
Individuals (higher or additional rate tax payer) – 185% or 160% including use of surplus income
Companies or Individuals (basic rate tax payer) – 155% or 140% including use of surplus income
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate.
Higher of pay rate, or reversion rate +0.75% if 5 year fixed
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Multi-Unit Freehold
Individuals (higher or additional rate tax payer) – 145% or 120% including use of surplus income
Companies or Individuals (basic rate tax payer) – 125% or 110% including use of surplus income
Higher of the (initial pay rate + 2%) or 5.5% if less than 5 year fixed rate.
Higher of pay rate, or reversion rate +0.75% if 5 year fixed.