Aldermore Mortgages

Mortgage Type

Residential

Property Value (min)

£60,000

Advance (min)

£25,000

Advance (max)

Level 1 Products
Available to 95% LTV* Max loan £1m

Level 2 Products
Up to 75% LTV Max loan £1m
Up to 90% LTV Max loan £750,000

Level 3 Products
Up to 75% LTV Max loan £600K

Up to 80% LTV Max loan £500K

*The LTV limits exclude fees. Fees can be added if the net LTV is 90% or less. The gross loan cannot exceed 95% (98% for employed applicants only)

Maximum 75% LTV for Interest Only (refer to product guide for full details)
Capital raising up to product maximum LTV accepted.

5.5 LTI ratio: for individuals or joint applicants with a total allowable income of at least £50,000

Note the following: - If a property is outside the M25 then max loan is up to £750,000 regardless of LTV.

Inside the M25 up to £1m

Term (Max)

40 years

Minimum Age

21 year old

Maximum Age

75 or their declared retirement age, whichever is lower, for capital repayment mortgages.

Family Cash Gift Deposit

Yes Aunt/uncle, foster parent or legal guardian now also accepted.

Family Gift of Equity Deposit

Yes, but 5% has to come from the applicant(s)

Income (min)

£10,000 pa for residential.
100% of basic salary, shift allowance, car allowance and London weighting. 50% of guaranteed/ regular overtime/
bonus/ commission and profit related pay. FTB accepted. 1 Years self- employed.

(Can only accept a maximum of two sources of income per applicant.)

£10,000 pa for residential.
100% of basic salary, shift allowance, car allowance and London weighting. 50% of guaranteed/ regular overtime/
bonus/ commission and profit related pay. FTB accepted.

1 Years self- employed up to 90%

(Can only accept a maximum of two sources of income per applicant.)

Income from employment and benefit: -

Benefit income Up to 100% of benefit income:
Universal Credit
Working Tax Credits (WTC)
Child Tax Credit (CTC)
Income-related Employment & Support Allowance (ESA)

FYI: 100% of evidenced income on overtime, bank nursing, universal credit, working tax credit, child tax credit and disability allowance
75% of evidenced income on commission and bonus.

Contribution-based Employment & Support Allowance if in the ‘Support Group’

Incapacity Benefit
Severe Disability Allowance
Industrial Injuries Disablement Benefit (IIDB)
Disability Living Allowance (DLA)
Personal Independence Payment (PIP)
Carer’s Allowance
Constant Attendance Allowance

Aldermore will not accept any income derived from other forms of state benefit that are not listed above.

Other income accepted: -

Income from trust funds
Occupational pension income
Guaranteed income payments under the Armed Forces Compensation Scheme
War widows or widowers pension
War disablement pension

State pension (not acceptable where state pension is the only source of income)

Investment income

Rental income (where supported by accounts or SA302s)

Maintenance Payments (if CSA/court order enforceable and supported by 6 months bank statements)

Foster Care Income

(LTI) up to 5.5x income for individuals or joint applicants has increased. Applicants must now have a total allowable income of at least £60,000 to access this LTI

For Debt Consolidation: -

For property related purposes can be considered up to a maximum LTV of 90% (excluding fees)
For non-property related purposes can be considered, up to a maximum LTV of 80% (excluding fees)
Capital raising for payment of taxes and consolidation of debts that have not been maintained satisfactorily is not permitted.

Ex-Local Authority Properties

Houses: - Accepted up to product maximum LTV, subject to the following conditions:
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
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Flats: -
Minimum property value of £100,000 (£200,000 in Greater London)
10 stories in London/South East & 6 stories for everywhere else. (ie 9 above ground floor & 5 above ground floor).
Secure communal access with no balcony access arrangements

Minimum Ownership

Remortgages within the first six months of the original purchase date are not normally acceptable. Remortgage from bridging - Remortgaging out of bridging finance will be subject to the length of ownership. Less than 6 months: restricted to the amount required to repay existing facility plus 100% of documented improvement cost, subject to ownership period of at least 1 month. Greater than 6 months: capital raising allowed over and above the sum required to redeem the bridging loan, based on any enhanced value of the property.
Owner-occupied, max LTV is 85%

Permanent rights to reside and remain

Yes

Ex-Patriates

New Builds

Houses and flats accepted

Credit Score

Historic CCJ’s & Defaults

Level 1 - CCJ's - if 0 in last 36 months then CCJ's do not need to be satisfied if none are recorded in this time.

Over 36 months, needs to be satisfied for 36 months if total combined value is over £500.

Defaults - 0 in last 12 - Max 1 recorded (up to £300) in last 36 months

Level 2 - Defaults and CCJ's - 0 recorded in last 18 months
Unsecured loan arrears maximum status 2 in last 12 months – latest month up to date

Level 3 -
Defaults & CCJ – 0 recorded in last 6 months
Unsecured loan arrears maximum status 3 in last 12 months – latest month up to date

Level 1, 2 and 3.
• Combined defaults & CCJs up to £300 ignored
• All communication defaults ignored
• Debt management plans considered when satisfactorily maintained for the last 12 months

Valuation Fees

Paid direct to lender at the lender fee scales.

Maximum number of applicants

Countries

England, Scotland and Wales.

Access

Access to Aldermore Mortgages is direct to lender with 3mc selected as your payment route

Missed mortgage payments

Level 1 - 0 in last 3 months 1 in last 12 months (max 2 in last 24) 1 Months evidence of mortgage payments holiday required. Level 2 - Mortgage or secured loan arrears – 0 in last 18 months Level 3 - Mortgage or secured loan arrears – 0 in last 6 months

Shared Ownership

Right to Buy (RTB)

Debt Management Plan

Consider an applicant on a Debt Management plan as long as there is no default attached to the plan in the last 3 years

Debt management plans considered when satisfactorily maintained for the last 12 months

Help To Buy (Shared Equity)

Help to Buy: equity loan

Maximum valuation - See table of regional price caps in product guide
Deposit - Applicants must fund a deposit of at least 5%
Maximum equity loan - Up to 20% of the property value
Repayment type - Capital repayment
Builder/part exchange - Not accepted
Location - England (including the Isle of Wight)
Occupancy - Security property must be the applicants main residence and only dwelling wherever situated.
Applicants cannot have a personal interest in any other property including buy to let or second homes.

London Help to Buy: scheme
Maximum valuation - £600,000
Deposit - Applicants must fund a deposit of at least 5%
Maximum equity loan - Up to 40% of the property value
Repayment type - Capital repayment
Builder/part exchange - Not accepted
Location - 32 London boroughs and the City of London
Occupancy Security property must be the applicants main residence and only dwelling wherever situated.
Applicants cannot have a personal interest in any other property including buy to let or second homes.

Ex-Bankrupts

Product range dependent - Level 1, 2 - Discharged for 6 years. Level 3 - 3 years

IVAs

Product range dependent - Level 1 - Discharged for 3 years. Level 2 - 2 years Level 3 - 1 year

Repossessions

Product range dependent - Level 1 - Not accepted.

Payday Loans

Product range dependent - Applicants can be considered where the loan was in place over 6 months ago.

Repayment Types

Capital and repayment. Help to Buy scheme is only Capital and repayment. Interest only - Maximum 75% LTV. Note: Proof of repayment plan required. Downsizing / sale of main residence – a minimum £175,000 equity (£300,000 in London and the South East) is required at the start of the mortgage

Lenders completion fee

Can be added

Affordability

Affordability based

Employment

Minimum 3 months employed in the same line of work with 12 months continuous.

Self Employed

CIS contractors
Applicants who have been registered under the CIS scheme for at least 12 months can be considered.

Applicants with less than 12 months under CIS may also be considered where they can demonstrate at least 24 months’ relevant experience in their trade.
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Zero-hours workers
Income from zero-hours contracts can be considered when assessing affordability.

For professional applicants, we can consider income based on a 12-month income history. For non-professional applicants, we normally require a minimum of 2 years with the same employer.

Where applicable, income will be assessed over a 52-week period.
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Self-employed applicants and accounts

We normally require 2 years’ accounting information. However, applicants with only 1 year’s accounts, figures or SA302s may be considered, subject to individual assessment.

Where only 1 year’s accounting information is available, we will consider the overall circumstances of the application. This includes requiring no payment arrears, defaults, CCJs or other adverse information within the previous 3 years on applicable personal and business credit searches.

We will also consider relevant supporting factors, which may include one or more of the following:

1) a proven track record in the applicant’s trade;
2) evidence of guaranteed income within the next accounting period;
3) evidence that the business is an ongoing and sustainable concern; or
4) management accounts covering at least the first 6 months of the current financial year.

Where appropriate, we may also request:

VAT returns for the previous 2 quarters; and/or
personal and business bank statements covering at least the previous 3 months.

For applicants with 1 year’s trading history, eligible income will be assessed using the first year’s profit or salary and dividends, as appropriate.
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Loan-to-value options for self-employed applicants

Subject to eligibility, affordability and our wider lending criteria:

1) applications of up to 90% LTV may be considered with 1 year’s accounts; and
2) applications of up to 95% LTV may be considered where 2 years’ accounts are available.

The maximum LTV available will depend on the individual application and applicable lending criteria.
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Company directors

For limited company directors with 2 years’ accounts, we can assess the most recent year’s eligible income.

Subject to our lending criteria, we can consider the appropriate income calculation using either:

salary plus dividends; or
salary plus the applicant’s eligible share of net profit (this will be case and scenario dependent).

Where applicable, we can use the more favourable eligible calculation when assessing affordability.
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Contractor income
Eligible contractor income can be assessed using the average weekly pay received over the latest 3 months, multiplied by 46 weeks to calculate gross annual income.

All income remains subject to verification and our affordability assessment.
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Higher loan-to-income options
A loan-to-income multiple of up to 6 x eligible income may be available to qualifying applicants.

The maximum loan-to-income multiple is not guaranteed and will depend on the applicant's individual circumstances, affordability assessment and applicable lending criteria.
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Complex and multiple sources of income
We can consider applications involving a range of complex or multiple income sources.

The income that can be taken into account, and the amount considered for affordability purposes, will depend on the nature of the income, the supporting evidence available and our lending criteria.