Aldermore adjusts owner-occupier affordability criteria; ModaMortgages accepts simple layer limited companies – round-up

The lender said “criteria improvements” would boost maximum borrowing capacity by circa 9% on average, according to its internal calculations. 

Aldermore said this “brings more optionality to bear for customers from an initial term perspective”, noting that it would narrow the gap between fewer-than-five-year and five-year deals. 

Jon Cooper, director of mortgages at Aldermore, said: “This is another change that we were keen to make for brokers and their clients, offering owner-occupiers significantly enhanced capacity to borrow. We’re a lender that listens to what our brokers and our borrowers tell us they need, and we’ll continue to make targeted improvements like this on an ongoing basis.” 

ModaMortgages to accept simple layered limited companies 

Specialist lender ModaMortgages will now accept simple layered limited company mortgage applications. 

This will be aimed at landlords who operate through a limited company structure, such as a special purpose vehicle (SPV) linked to one other company. 

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Directors and shareholders must collectively hold at least 75% shareholding across both the SPV and the linked company, and this is limited to a maximum of four applicants. 

CHL Mortgages for Intermediaries, a subsidiary of ModaMortgages’ parent company Chetwood Bank, will continue to support landlords with more complex layered limited company requirements. 

Darrell Walker, group sales director at ModaMortgages, said: “This latest expansion to our criteria shows how committed we are to meeting the evolving needs of landlords in the ever-changing specialist buy-to-let space. 

“We’re introducing this criteria enhancement after listening to feedback from brokers, who told us they were receiving more requests for simple layered limited companies from their clients. 

“By providing a simple layered limited company offering solution, we can now provide more comprehensive support to landlords looking for alternative ways to structure their buy-to-let holdings.”