(1) We've updated our Buy-to-let lending criteria and affordability calculators.
With effect from today, 15 December 2017, we've made changes to our Buy-to-let lending criteria including our Buy-to-let Portfolio Resilience Stress rate.
Here's a summary of the changes which could impact your clients when applying for a mortgage:
• Portfolio Resilience Stress reduced from 5.5% to 5%.
• 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.
• To find out what that means for your clients use our updated Buy-to-let Affordability Calculator, which can be used to test the affordability of your client's individual applications and portfolio as a whole.
• Updated tenancy criteria to include Scottish Private Residential Tenancies with no maximum term requirement.
To view all changes to our policy, please read our updated Buy-to-let Mortgages Full Lending Criteria
If you need assistance with your client's Buy-to-let application please contact us on 0333 321 1000.
Residential Affordability Calculator:
Our NEW digital residential owner occupied calculator is now live and can be accessed via the intermediary website.
(2) Aldermore Managed Rate increased from 4.73% to 4.98% - 01 December 2017
As previously communicated the Aldermore Managed Rate has been increased from today (01 December).
As a reminder, in line with the recent Bank of England Base Rate change (0.25 % to 0.50%), the Aldermore Managed Rate (AMR) has increased by 0.25%; from 4.73% to 4.98% with effect from today for:
• New business (including pipeline)
• Existing customers
The AMR is Aldermore's standard variable rate for residential mortgages and buy-to-let for individuals. The change in AMR means that, across these product ranges, Aldermore's Term Variable rate mortgages have increased by 0.25% and all reversion rates on fixed rate mortgages have increased by 0.25%.
Updated product guides
For our latest rates (effective from 1 December) please view our updated product guides:
• Residential Mortgages Product Guide
• Buy-to-let Mortgages Product Guide
Existing Aldermore customers
We have written to all existing Aldermore mortgage customers, with mortgages affected by the change, to let them know their new interest rate and monthly payments effective from 01 December 2017.
How does the change in AMR affect pipeline/pre-completion Aldermore cases?
• Fixed rate cases are not affected, except by an increase in the variable reversion rate
• Term Variable rate cases at DIP, application or offer stage will automatically have their rate increased by 0.25% with immediate effect.
If you have any queries, please contact your
Business Development Manager or call 0333 321 1000.
(3) We’ve recently updated our RM and BDM locator on our website – click here to check your contacts https://intermediaries.aldermore.co.uk/contact-us.