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Aldermore publishes buy-to-let portfolio criteria

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  • 07/07/2017
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Aldermore publishes buy-to-let portfolio criteria
Aldermore Bank has unveiled its buy-to-let portfolio criteria to comply with the Prudential Regulation Authority's incoming rules, applying a two-tier approach which depends on the number of mortgaged properties owned.

For landlords with up to 10 mortgaged buy to lets with Aldermore, they must submit a portfolio schedule and business plan.

Landlords with 11 or more mortgaged properties with Aldermore need to supply the bank with a 12-month cash flow forecast and a statement of assets and liabilities, along with the portfolio schedule and business plan.

Face-to-face interviews must be carried out for landlords who have secured £1m or more of total borrowing with Aldermore, or have 11 or more mortgaged buy to lets with the bank.

The bank only expects face-to-face interviews to be required in a small number of cases. When an interview is needed, a business development manager or relationship manager will let the broker know that a specialist underwriter will be in contact with the client. This may include a visit to the application property or an existing property in the client’s portfolio.

Additional checks such as portfolio affordability testing and rental income validation by postcode will be carried out and where the assessment of personal income is used, an assessment of living costs and expenses will be a carried out.

Charles McDowell (pictured), commercial director, mortgages, Aldermore, said: “We recognise that there are big changes ahead and as a business, we have focused our attention to ensure that we and our brokers are best placed to meet these required changes.

“Having spoken to brokers, we recognise that lenders need to respond to the changes as there is currently not enough support available for brokers who need to adapt. This is why we have created the guides which we believe will help to provide the necessary information and support.”

Specialist Lending Solutions has been calling for buy-to-let lenders to publish their portfolio criteria by the summer, as brokers fear being kept in the dark until September will be damaging for their clients.

TMW was the first lender to publish its requirements for portfolio lenders, last month.

During a panel debate at the National Association of Commercial Finance Brokers, Together and Shawbrook pledged to improve their communications to brokers of their criteria requirements.

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