Aldermore Mortgages

Mortgage Type

Buy To Let

Property Value (min)

£60,000 (single residential units) **** £75,000 (HMO's, Multi Unit Freeholds and other properties)

Advance (min)

£25,000

Advance (max)

£5,000,000 to 75% LTV on 1 unit. £35,000,000 to a single customer.

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

Maximum Age

85 years at end of the mortgage term.

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

Yes

Income (min)

No minimum income - although evidenced income must support no more than 40% of personal debt.
£25,000 minimum income for First Time Landlords

Restrictions

No minimum requirements to have current BTL’s.

Maximum of £35,000,000 with Aldermore.

CAPITAL RAISING ACCEPTED FOR THE BELOW REASONS: -
- Onward property purchases 70% LTV
- Debt con 75% LTV
- Reducing other mortgage balances 75% LTV
- Home improvements to our property 75% LTV

No limit on the size of their portfolio elsewhere.

Flats in a block without a lift are acceptable, as long as our security is not more than 3 floors above ground level (this doesn’t apply for ex-public sector flats).

Property where a flying freehold exists and affects more than 25% of the total floor space

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

Flats in a block without a lift are acceptable, as long as our security is not more than 3 floors above ground level (this doesn’t apply for ex-public sector flats)

Can consider Coach houses, usually built above garages and/or an access way.
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LTV restrictions could apply if lending above 40% - when it comes to exposure limits within a block.

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 pre-emption clauses in existence

Mobile homes

Houseboats

Property held on a Commonhold basis

Freehold flat or freehold maisonette (freehold coach houses are acceptable subject to survey)

Property where a flying freehold exists and affects more than 25% of the total floor space

Property with the following restrictive covenants: Property restricted to agriculture or equestrian use

Purchaser(s) must be living and/or working in a small geographical area (e.g. specific parish), which is not in the list of acceptable areas

Purchaser(s) must be in housing need

Purchaser(s) cannot afford to purchase on the open market

Purchaser(s) having income less than a certain amount

Property ownership restricted to specified age group e.g. retirement homes

Limit on mortgage payment as a proportion of income

Fixed capital values

Consumer BTL
Standard Criteria applies unless the applicant is a FTL or the transaction is a Let to Buy – see relevant sections. Please refer to your Business Development Manager for more information.

Let to Buy (Turning Residential into Buy to Let)

Remortgage of residential into a BTL accepted - Max LTV 75% and max loan of £600,000

DWP Tenants

Yes and DSS

Ex-Local Authority Properties

Can be considered up to 75% LTV, subject to the following conditions:

• Minimum property value of £100,000 (£200,000 in Greater London)

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

• Maximum of 3 floors above the ground floor

• Secure communal access with no balcony access arrangements

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

• The property being of standard construction

• Private access (not via balcony)

• Good location (i.e. close to local amenities and close to transport locations).

• Evidence of good demand ( i.e. what percentage of the block is privately owned, at the very least 25%)

• No large panel/concrete constructions.

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 plus mortgage term

Minimum Ownership

Remortgages within the first six months of the original purchase date are not normally acceptable.

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 - can consider remortgage from short term finance and remortgaging out of short term finance provided by other lenders will be subject to the length of ownership.

Greater than 6 months: capital raising allowed over and above the sum required to redeem the short term finance, based on any enhanced value of the property.

Remortgage from a cash purchase

Remortgage when the property was purchased as a cash transaction can be considered subject to ownership period of at least 1 month and is restricted to 100% of documented improvements costs. This does not include the initial cash amount to purchase the property.

Greater than 6 months, capital raising allowed based on the enhanced value of the property

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

Permanent rights to reside and remain

Yes (unless Ex-Pat)

Ex-Patriates

Maximum loan amount of £400,000 up to 75% LTV

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

Applications can be accepted for Expatriates via selected brokers or directly but must meet the following criteria:

Maximum loan amount of £400,000 up to 75% LTV

Maximum loan amount of £600,000 up to 70% LTV Rental is required to meet the standard affordability calculation set out in section 2.4.2, based on rental income alone.

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 and not reside in any of the prohibited countries as set out in the CDD Requirements, Part 2 - Residential Policy.

Applicants have a UK bank account and mailing address, which is not the same as the security address

Applicants must provide a copy of their current employment contract or, if self-employed, provide accounting information.

Proof of residency is required from applicants overseas address dated within the last three months

There must be no intention to reside in the property, as this would result in a regulated mortgage

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

New Builds

New Build flats and houses considered.

Credit Score

No

Rental Calculation

Applicant type – Minimum interest cover ratio

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

5 year fixed products are stressed at the higher of (i) initial pay rate or (ii) reversion rate + 0.75%

HMO Rental Calculations: –
Individuals (higher rate) – 185% or 160% with income

Additional rate tax payer
185% or 160% with income

Companies and Basic rate tax payers
155% or 140% with income

Multi-unit freehold
Individuals (higher rate) – 145% or 120% with income

Additional rate tax payer
145% or 120% with income

Companies and Basic rate tax payers
125% or 110% with income

Portfolio rental stress is at 5% – can consider a rental boost if falling short on rental income for portfolios.

If the individual stress rate for the application is below the portfolio stress of 5%, the lower stress rate will be factored in to the overall assessment of the portfolio.
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Commercial Owner Occupied – 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)

Historic CCJ’s & Defaults

None in last 3 years for residential property.
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

Maximum number of applicants

No maximum

Countries

Will lend in England, Scotland and Wales

Access

Access to Aldermore commercial is available via selected packagers only

Regulated BTLs

No

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.
Holiday lets (not flats) cannot be considered.

Do not consider flats above commercial (restaurants, takeaways and public houses)

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

Location

Will lend in England, Scotland and Wales

Type of Credit Search conducted at AIP stage

Hard foot print

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