The lender said the new structure, which goes live on 29 July, is designed to broaden support for first-time buyers, self-employed applicants, company directors, contractors and borrowers with complex income or adverse credit histories.
As part of the changes, Aldermore is increasing its maximum loan-to-value (LTV) limit to 98% for employed customers, while also expanding its acceptance of unsecured credit and utility bill arrears.
The lender has also increased its tolerance for county court judgments (CCJs) and defaults and introduced more flexibility around secured credit arrears.
Aldermore said the five-tier approach would allow it to assess a wider range of customer circumstances and help brokers identify the most appropriate lending solution for individual borrowers.
Jon Cooper, director of mortgages at Aldermore, commented: “We know brokers are supporting customers with increasingly diverse financial circumstances, and they need lenders that can take a more specialist approach. Whether a customer is self-employed, has multiple income streams or is recovering from a previous credit issue, they deserve a fair assessment of their individual circumstances.
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“Our enhanced five-tier cascade range gives brokers greater flexibility to support more residential clients across a broader range of credit profiles, making it easier to find the right lending solution with confidence. It’s another step in our commitment to helping customers who don’t fit traditional high street criteria move closer to homeownership. We’ll continue to invest in our proposition, with further product enhancements to be announced later this week.”
