Speaking at The Mortgage Administrator Online Event (MAOE) Aldermore’s relationship manger Danielle Walters (pictured) said that adding a supplementary note to an application can “build a picture for the underwriter”, especially when it came to the impact of Covid-19 on turnover and anticipated issues going forward.
“We just want to have that story submitted with the application so that when the underwriter picks the case up, they will have a better understanding,” she said.
Walters said: “It’s really imperative that when an underwriter picks up a case, they’re not just looking at a bunch of figures, they actually have an understanding as to why that client is in the position that they’re in.”
She said that Aldermore were taking a more “cautious approach” to sectors that were more heavily impacted by Covid-19 such as travel, leisure and hospitality but noted that there were not ruling them out completely.
Walters said: “We are not discounting them, because we will consider lending to most self-employed without any issues.”
She said that Aldermore will still lend up to five and half times income for self-employed, subject to affordability, which takes borrowers up to the 90 per cent loan to value (LTV) band.
She continued that Aldermore would take a “holistic view” of borrowers using government support measures like back-up loans but noted that the lender may use an average but said that would be a “worst-case scenario”.
“We can’t tar everybody with the same brush, we have to have a better understanding of that application and they key word to all self-employed mortgage applications is sustainability,” she added.
Walters said that those impacted by Covid-19 or has had varying income the lender may require additional income evidence from an accountant ‘s reference or company accounts.
The presentations from the MAOE event will be available to watch on demand on Mortgage Solutions YouTube channel tomorrow morning.