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Aldermore Commercial

Mortgage Type

Specialist BTL/Commercial

Property Value (min)

£60,000 (single residential units) £75,000 (includes HMO, MUF, Commercial, Semi-Commercial and Commercial Owner Occupier assets)

Advance (min)


Advance (max)

£5,000,000 to 75% LTV on 1 unit. £25,000,000 to a single customer. Loans above 70% are subject to additional internal Aldermore criteria.
Owner Occupiers to borrow up to £1m on an interest only basis, for up to 10 years

Term (Max)

10 Years Interest only 35 years maximum for C&I Capped at 20 years for 7 bedrooms or more on HMO and 5 units or more on multi freehold

Minimum Age

25 years for first time landlords

Maximum Age

85 years at end of the mortgage term.

Family Cash Gift Deposit


Family Gift of Equity Deposit


Income (min)

No minimum income - although evidenced income must support no more than 40% of personal debt.


Up to 70% LTV on all commercial products (up to 75% LTV is exception only) - the following criteria is applied: -

1. City Centre Location
2. High location demand
3. Strong tenant potential
4. Top quality property (most properties build 1960s will be kept at 70% LTV).

Restrictions on numbers with other lenders - maximum. Interest only considered on Residential property types.
Aldermore Commercial's minimum experience required for HMO products is 3 years as a landlord. Each case is considered on it's own merits.
Property with Planning Use Classes Order other than:
– C3(a)(b)(c)
– C4 (including – HMO with an ‘Article 4 direction’ in place) – HMO with Sui Generis planning use

Property subject to a shared ownership deed

Property with preemption clauses in existence

Mobile homes


Property held on a Common hold basis

Freehold flat or freehold maisonette

Property where a flying freehold exists and affects more than 15% of the total floor space

Property with restrictive covenants or sale ability; e.g. retirement homes/houses or apartments found within a holiday park and sheltered housing schemes

Farms, smallholdings or properties with agricultural restrictions in place

Newly built or newly converted flat

Serviced flats/apartments

Studio flat and/or flat with a total floor area of less than 30sq meters

Flat in a block with more than three floors above ground floor and which does not have a lift Notes: top floor and attic can be considered as one floor, if they are part of the same flat

No exposure limit on percentage within the block

Bespoke student accommodation

Prefabricated building and un-repaired PRC construction

Property listed as defective under the 1984 and 1985 housing acts unless rebuilt to NHBC standards and with appropriate guarantees. The adjoining properties must also have been repaired to the same standard.

Wimpey No-Fines (if constructed prior to 1946 or bungalow or flat)

Laing Easiform construction (if constructed prior to 1966 or bungalow or flat)

Property where high alumina or Mundic block cement has been used in the construction.

Timber framed property that does not have a brick or “block and rendered” outer skin

Steel framed constructions except post-1987 construction within BBA or WIMLAS certification

Property constructed using concrete Large Panel Systems (LPS)

Property on which there is a local authority grant outstanding

Live/work units (unless part of Tailored BTL transaction)

Property with an anticipated lifespan of less than twenty-five years beyond the end of the mortgage term and/or where the condition significantly affects marketability

Property with no kitchen

Single residential investment property with more than two kitchens.

Property with no bath/shower room

Property which has shared access where a relative of the applicant resides in the other property

Property which has any shared services with any adjoining or adjacent property which does not form part of our security

Property which is being bought from the applicant’s own limited company (unless Tailored BTL transaction)

Grade 1 listed or Scottish equivalent Grade A listed security

Where satisfactory tenant demand does not exist or the proposed security is considered unsuitable for private renting.

Let to Buy (Turning Residential into Buy to Let)

Remortgage of residential into a BTL accepted

DWP Tenants


Ex-Local Authority Properties

Houses - Up to 75% LTV (ony Buy to let range)

Ex-local flats are considered if £200,000 minimum in London postcodes.

No outstanding pre-emption requirement to repay a proportion of the discount

Valuer indicating that there is evidence of a meaningful level of private ownership within the estate

The property being of standard construction

Minimum years remaining on leasehold property

40 years at the end of the mortgage term

Minimum Ownership

Remortgages within the first six months of the original purchase date are not normally acceptable unless: -

Remortgaging out of bridging finance provided by other lenders will be on a pound-for-pound basis only and capital raising will not be available.

Remortgage of an Aldermore bridging loan onto an Aldermore term product where an Aldermore Bridging loan exits onto a term product:

It will be free from the normal 6 month ownership rule (if held for at least 1 month)

Capital raising in excess of the original bridging loan will be considered on any uplift in value confirmed by the original surveyor, subject to scheme limits Capital raising.

For property related purposes can be considered up to a maximum LTV of 80%

For non-property related can be considered, up to a maximum LTV of 75%

Capital raising for payment of taxes and consolidation of debts that have not been maintained satisfactorily is not permitted
remortgage considered.

Will lend against OMV within 6 months subject to criteria, whilst we will consider re-mortgaging within 6 months at enhanced value this would be at a maximum of 90% of cost/75% LTV on new valuation

Permanent rights to reside and remain

Yes (unless Ex-Pat)
Applicants must normally be UK or EU nationals and continuously resident in the UK for the past 2 years. Applications can be accepted from non-UK/EU nationals providing they have been a UK resident for the past 2 years and they have non-conditional and permanent rights to reside (i.e indefinite leave to enter/remain or right to abode)


Maximum loan amount of £400,000 up to 75% LTV if case is considered by exception.
Maximum loan amount of £600,000 up to 70% LTV

Available single residential investment units, up to 6 Bed HMO's & up to 4 units on 1 freehold title

• Rental is required to meet the standard affordability calculations based on rental income alone: 145% ICR standard units (including multi-unit freehold) for individuals and 185% for HMOs.
• No surplus personal income can be used in either the individual standard affordability calculation or the portfolio affordability assessment.
• Applicants must be British Citizens who have been resident and liable to pay income tax in the United Kingdom within the last 5 years and who are now working abroad.
• Applicant(s) must be residing in a Financial Action Task Force (FATF) member country or confederation. Restrictions apply, see product guide

Aldermore can consider remortgages of previous residential properties, they will class this as a consumer buy to let.

New Builds

New Build/newly converted flats not accepted.

Credit Score


Rental Calculation

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.

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.

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

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.

Historic CCJ’s & Defaults

None in last 3 years for residential property.

None registered in last 36 months , CCJs registered over 36 months ago considered , Over 36 months, does not need to be satisfied if total combined value is up to £500. Over 36 months, needs to be satisfied for 36 months if total combined value over £500

For commercial enquiries, up to 2 unsatisfied CCJs in the last 24 months up to a maximum value of £5,000. Allowed up to 5 CCJ's with the last 5 years will be considered subject to underwriting. Defaults considered on case by case basis.

Valuation Fees

Paid direct to lender at the lender fee scales - quote needed upon case submission for any commercial property.

Maximum number of applicants

No maximum for commercial lending, 6 for BTL


Will lend in England, Scotland and Wales


Access to Aldermore commercial is available via selected packagers only

Regulated BTLs


Missed mortgage payments

Up to 1 in the last 12 months, none in last 3 months for residential property/HMO, for commercial property none in last 3 years payments.

Property Type / Commercial

HMO’s, student BTL. Multi-unit on 1 title, semi commercial, commercial investments units plus owner occupied commercial units. Available to trading Ltd Co. SPV’s and individuals.
Allow single name into a limited company name using a directors loan and must be at market value.

Non-standard construction
Wimpey No Fine and Laing Easiform, acceptability will be linked to valuers' assessment - so can consider.

No longer accept any buy to let property with an EPC rating of F or G
Buy to let properties must have an EPC of E or above or a registered exemption certificate

Max LTV varies at LTV and Term and mortgage type.

Holiday lets are not considered.

Affordability is to be based on standard AST/SAT income and this income must meet the ICR hurdle for a single investment property at the relevant stress rate (no offsetting). Consideration must also be given to the demand for holiday letting in the area and evidence of demand should be obtained. Refer on a case by case basis. Holiday let flats not acceptable.
This is only for the Aldermore Commercial arm, not Aldermore Mortgages.

Commercial Investment – up to 70% of MV on C&I basis and up to 60% of VPV on Interest Only basis
Commercial Owner Occupier – up to 70% of VPV
Part & Part – up to 70% of MV but needs to amortise/pay down to 60% of the Vacant Possession Value by expiry.


Will lend in England, Scotland (Mainland) and Wales

Type of Credit Search conducted at AIP stage

Soft at AIP, Hard foot print at application

Portfolio Landlords

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

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