The bank’s level two range is open to borrowers with up to two county court judgements (CCJs) with a combined value of £3,000 in the last three years. They can have up to two recorded defaults totalling £5,000 in the last two years, forced or voluntary possessions must be older than six years and any bankruptcy or individual voluntary arrangement (IVA) must have been discharged for three years.

Level three borrowers are allowed up to three CCJs in the last three years, up to four recorded defaults in the last two. Possessions must be older then three years while bankruptcy or IVA claims should be discharged for two.

The ranges are available for purchases and remortgages on two and five-year fixed rates up to 80 per cent loan to value (LTV). Rates begin at 3.68 per cent across the level two products and 4.18 per cent for level three deals. 

For buyers using the Help to Buy scheme, there are options for level two and three borrowers up to 75 per cent LTV. These include two and five-year fixed rate products, with pricing beginning from 4.38 per cent. 

For borrowers with no credit history issues, the level one Help to Buy range has had its rates reduced by up to 0.30 per cent. 

Aldermore has also cut the rates on its high loan to value (LTV) products and re-introduced zero fee options for first-time buyer mortgages. 

Two and five-year fixes at 85 per cent LTV have been reduced by 0.20 per cent while 90 per cent LTV products have fallen by 0.30 per cent. 

Fee-free deals between 85 and 95 per cent LTV have rates ranging from 4.18 per cent for a two-year fix at the lower tier and 5.58 per cent for a five-year fix at the higher tier. 

Jon Cooper (pictured), commercial director of mortgages at Aldermore, said: “At Aldermore, we believe that less than perfect credit shouldn’t be a complete barrier to home ownership and people deserve the opportunity to realise their life goal of finding a home. 

“We’re delighted to announce our expanded range for homeowners and first-time buyers and, through our human approach to lending which enables us to consider each case on its individual merits, we can support customers in finding the right mortgage for them.” 

One third of those questioned said they do not have enough savings to last three months if they find themselves out of work. The research highlighted the struggle many in the self-employed field are feeling but also the resilience and entrepreneurial spirit of many in the sector, said the bank.

Over a third of the self-employed applied for government support during the last 18 months and one quarter of self employed home owners requested  a mortgage holiday period during the past 12 months.

Worsening financials

The data showed 51 per cent of those self employed in the UK think their financial situation has become worse over the past year with three in five saying that their monthly earnings have decreased since the pandemic began and 41 per cent believe that they will not be able to return to their pre-Covid earnings in the foreseeable future.

“For the self employed that feel pessimistic about their future home buying prospects after this difficult period, there are options available to help,” Jon Cooper, head of mortgage distribution at Aldermore (pictured) said. ‘It’s important to seek advice from a broker who can provide whole of market experience and to explore specialist lenders options, as they function to dig into the detail of an applicant that may have complicated income streams lifting traditional barriers to getting on the housing ladder.”

Just over a third of the self-employed in the UK  applied for government support during the last 18 months and one quarter of self employed home owners have requested  a mortgage holiday period over the last year.

Market change

Banks such as Santander and Bluestone have recently introduced some key changes, making it easier to lend to the self-employed. Santander announced earlier this year that it will discard the 2020-21 tax year for self-employed borrowers who have been hit by the Covid-19 pandemic and Bluestone reduced rates by up to 1.87 per cent. 

In July, NatWest confirmed it will launch a new proposition for self-employed borrowers following reports regarding the treatment of these customers.

However, while economic conditions remain difficult, Aldermore’s research also shows resilience from within the self employed sector, with 46 per cent of the self employed in the UK saying adapting their businesses to help them stay afloat.

“To help improve your credit profile, make sure to show evidence a steady stream of work,” added Jon. “It is important to show a strong pipeline of upcoming work to reassure lenders. Simple steps such as registering on the electoral roll, paying off debts and meeting regular payments make a difference.”

Paul Shearman, mortgage, protection and GI proposition director, The Openwork Partnership said: “Buying a home is an important step in life but many would-be borrowers may feel it is unobtainable for them right now due to the pandemic. With Aldermore’s expanded range, there will be more opportunity for those borrowers who need an individual approach to lending, whether they are self-employed, have a low deposit, or blips in their credit history.”

Aldermore relaunched back into the 95 per cent LTV market in March with a two-year and a five-year pilot deal priced at the same rates for a limited period. The lender withdrew from the market completely in April 2020.

The offering also includes a five-year fix at 5.28 per cent with both low deposit loans offered with a £999 product fee.

The lender has also refreshed its wider owner occupied range and introduced broader products for purchase and remortgage.

The provider’s limited edition products for purchase and remortgage are fee-free with no product and valuation or funds transfer fee, with free legals on remortgages. The rates offered include a two-year fix at 2.48 per cent or a five-year fix at 2.68 per cent up to 75 per cent LTV.

Up to 80 per cent LTV, the lender is offering a two-year fix at 2.78 per cent and a five-year at 2.98 per cent.

The lender has also made rate reductions of 0.10 per cent across its standard level one range.

Aldermore bank lends to 5.5x income for individuals or joint applicants with a total allowable income of at least £50,000 and a maximum term of 40 years. The bank also considers applicants with communications defaults or other defaults registered over three years ago, alongside applicants who’ve taken government grants or bounce back loans.

Jon Cooper, head of mortgage distribution, Aldermore (pictured) said: “It’s important people see they have the opportunity to realise their home ownership dreams, which is why we consider every application on its own merits, and pride ourselves on tackling even the more challenging applications. If there’s a way to make it happen, we’ll find it.”

Paul Shearman, mortgage, protection and GI proposition director, The Openwork Partnership said: “Buying a home is an important step in life but many would-be borrowers may feel it is unobtainable for them right now due to having to adapt their finances during the pandemic. With Aldermore’s expanded range, there will be more opportunity for those borrowers who need an individual approach to lending, whether they are self-employed, have a low deposit, or blips in their credit history.”

Aldermore relaunched back into the 95 per cent LTV market in March with a two-year and a five-year pilot deal priced at the same rates for a limited period. The lender withdrew from the market completely in April 2020.

For individual landlords with single residential properties, the bank has added a two-year fixed rate product up to 80 per cent loan to value (LTV) with a rate of 3.88 per cent. For a five-year fix, this product has a rate of 3.98 per cent.  

Up to 75 per cent LTV, the five-year fixed deal has been reduced by 0.3 per cent to 3.48 per cent. 

All products have fees of 1.5 per cent. 

For company landlords with a single residential property, the bank has launched five products up to 80 per cent LTV. These offer two and five-year fixed rates ranging from 3.88 per cent to 4.28 per cent. 

Up to 75 per cent LTV, products with rates varying from 3.48 per cent to 3.78 per cent have been introduced. These products have either no fee, or fees of £1,999 and 1.5 per cent. 

A five-year fixed product up to 75 per cent LTV has been reduced by 0.3 per cent to 3.48 per cent, and this has a 1.5 per cent fee.  

Changes have also been made to offerings for portfolio landlords and those lending against homes in multiple occupancy (HMO) and multi-unit freehold blocks (MUFB) up to six units. 

These include the introduction of products up to 75 per cent LTV and rate reductions of 0.3 per cent. 

Jon Cooper (pictured), head of mortgage distribution at Aldermore, said: “With the outlook for the economy looking more favourable, due to the success of the vaccination programme and the near ending of social distancing restrictions, now is the time many landlords will be considering their future strategies.  

“So we’re delighted to announce a wave of new products and better rates to help those landlords, both big and small, realise those future portfolio goals.” 

The project at Kelham Central (pictured) will use modern methods of construction (MMC) to cut construction time and waste, and deliver energy-efficient homes that reduce the occupier’s carbon footprint.

The planned MMC approach includes use of timber panels designed collaboratively with Leeds Beckett University, which will be manufactured at Citu’s facility 35 miles from the site.

The Aldermore-funded units form part of a wider, fully-funded scheme comprising 114 homes in total.

The developer Citu is also close to completing its neighbouring Little Kelham site, which will deliver 153 homes, 15,000 sq ft of retail space and 20,000 sq ft of commercial units.

Iain Bryson, head of development and specialist property at Aldermore, said: “We recognise that MMC plays an increasingly important role in delivering homes. We’re committed to working with construction firms, housebuilders and developers like Citu to fund high-quality, low-carbon, sustainable developments.”

Chris Thompson, managing director of Citu Group, added: “Banks have a large influence in directing funds to climate-conscious projects and businesses, and we welcome Aldermore’s vision in supporting us in bringing this important project to fruition.”

Aldermore Bank’s first-time buyer index, which surveyed over 1,000 first-time buyers, also found that one in five intended to use a broker soon to secure a home purchase.

The survey found that around 98 per cent of first-time buyers said using a broker during the home-buying process was helpful.

The top three reasons cited for using a broker, with each factor surpassing 54 per cent included advisers providing useful recommendations, checking affordability of mortgages and helping buyers navigate complicated paperwork.

Other reasons cited included providing information previously unknown to the buyer, which was the case for 37 per cent of respondents, finding and recommending certain mortgages as cited by 35 per cent of people and the clear explanation of the process, according to 34 per cent of respondents.

Aldermore’s mortgage distribution head, Jon Cooper, said brokers had been a “life raft” for first-time buyers amid challenges and worsening conditions due to the Covid-19 pandemic.

He added: “Buying a property can be a very daunting experience but brokers have been vital to first-time buyers the past twelve months in assisting them to navigate through this period of uncertainty.

“The much-needed expertise and guidance they have provided really shows how crucial the role of the broker is in today’s housing environment and it’s very encouraging that their services have been found to be universally beneficial.”

The changes are effective from today, with the largest increases applied to some of its feesaver products.

The rate on its five-year fixed feesaver 85 per cent LTV will be cut by 0.2 per cent to 2.79 per cent. The two-year fixed feesaver 85 per cent LTV product will be reduced by 0.15 per cent to 2.64 per cent.

The lender’s two-year fixed rate feesaver 90 per cent LTV product will decrease by 0.15 per cent to 2.09 per cent.

The lender has also cut rates on several of its £999 fee products. The rate on the five-year fixed 85 per cent LTV product was reduced by 0.15 percent to 2.59 per cent, and on the two-year fixed 85 per cent LTV by 0.15 per cent to 2.64 per cent.

The rate for its two-year fixed rate 90 per cent LTV will decrease by 0.1 per cent to 2.89 per cent.

Michelle Andrews, head of Buying a Home at HSBC UK said: “These mortgage cuts across 85 per cent and 90 per cent LTVs will make it cheaper for those with a smaller deposit to get onto or up the property ladder.”

Aldermore introduces remortgage products and cuts 75 and 80 per cent LTVs

Aldermore has announced that it has reduced rate across a range of its purchase and remortgage products at 75 per cent and 80 per cent loan to value (LTV), and added several new remortgage products.

The lender has introduced four new remortgage products which had no product fee and free standard legal and valuation fees.

This includes a two-year and five-year fixed, at 75 per cent LTV, with rates of 3.48 and 3.78 per cent respectively.

The lender also brought in two-year and five-year fixed rates, at 80 per cent LTV, at 3.68 per cent and 3.98 per cent respectively.

Aldermore’s head of mortgage distribution Jon Cooper (pictured) said: “With the reintroduction of these remortgage products, we’re delighted to be providing a greater amount of choice to homeowners looking to secure a better deal or reduce monthly payments to release funds to be put towards other large expenses on the horizon such as home renovations.”

The lender has also reduced rates on four of its purchase and remortgage products – which are subject to a £999 fee – by 0.3 percent.

Its two-year at 75 per cent LTV will now be 3.18 per cent, whilst its five-year fixed rate will be 3.38 per cent.

The rates for its two-year and five-year fixed at 80 per cent LTV will stand at 3.48 per cent and 3.68 per cent respectively.

Cooper added: “The pandemic has accelerated the increasingly broad set of financial circumstances that borrowers have, so we want to be inclusive and responsive to this long-term trend.

“It is important to give opportunity to the widening number of people that may have complex income streams or credit issues in the past so that they can find a product that suits their individual circumstances.”

Mortgage Solutions has exclusively released the video presentations from the day. To watch our raft of expert speakers, click here. 

Overviews of the day’s sessions and speakers are below: 

Buy-to-let market overview 

How has the UK buy-to-let market been impacted by the pandemic? How have landlords and lenders reacted, where do the opportunities lie now and how should advisers be positioning themselves to best cater for landlord clients? 

Phil Rickards, head of BM Solutions 

The lie of the land for landlords: 2021 and beyond 

What are the key regulatory and fiscal changes coming up that both landlords and intermediaries need to be aware of? And where do the best opportunities now lie in this sector? 

Jason Wilde, national sales manager, Paragon 

In good company 

A look at company buy to let, exploding the myths, identifying opportunities where you might see challenges and offering practical tips for placing tricky cases. 

Matt McCullough, national sales manager, Aldermore  

Discussion panel 

Industry experts discuss a range of current issues of interest to the buy-to-let broker, giving both the lender and adviser perspective. 

Steve Cox, chief commercial officer, Fleet Mortgages, Phil Rickards, head of BM Solutions and Jane Simpson, TBMC 

Green homes: The UK housing market and climate change 

A look at the impact the UK housing market is currently having on CO2 emissions and the steps that both lenders and landlords can take to help shape the future of green living for tenants. 

David Whittaker, CEO, Keystone Property Finance 

How technology is shaping the future of buy-to-let lending. 

The events of 2020 catapulted the shape of technology in the buy-to-let lending space forward almost 10 years. This session examines the need to further evolve technology in this market, what that means for the future landscape and what lenders are doing to keep ahead of the curve. 

 Andy Virgo, director, buy to let, LendInvest 

Understanding HMOs  

An overview of the key differences between a single let and a homes in multiple occupancy (HMO), identifying when a property may need licensing or planning permission and answering the question of why landlords are being drawn to HMOs for their next property investment.  

Alex Witham, business development manager and Bethany Foryszewski, business development manager, Landbay 

Look after your landlords  

What are the opportunities for intermediaries to ensure they protect, support and grow their landlord customer base in the short, medium and longer term?  

Ben Williams, corporate relationship manager, Coventry for Intermediaries 

The lender’s relationship manager, Danielle Walters (pictured) will be presenting the session. 

The event will take place on 23 June and attendees can join remotely from a desktop, mobile phone or tablet. 

Delegates will also be able to ask speakers questions via live video link. Additionally, brokers will be given the opportunity to download product information and other resources from attending sponsors. 

Read more about Danielle Walters’ presentation below:  

Self-employed made simple: We’ll give you an overview of the current self-employed landscape and how it’s changed. We’ll also provide tips to support you in packaging a good self-employed case.

Register to attend: https://www.mortgagesolutions.co.uk/events/mortgage-administrator-event/venues/mortgage-administrator-online-event-2021/?pfat=66b2e6b352e048bbb98976ee58abe16e 

House prices across the UK grew 10.2 per cent in the year to March 2021, the ONS said.

The rate of growth was the highest since August 2007, with an acceleration having started in H2 2020 and then continuing into this year.

The increase month-on-month was 2.1 per cent from February to March 2021, compared to 0.8 per cent for January to February.

Price growth was strongest for detached properties, at 11.7 per cent. For a flat or maisonette it was 5 per cent.

The average price of a home hit £256,000 in March, up from £232,000 in the same month last year — for England, Wales, Scotland and Northern Ireland.

In each of the four countries of the UK, average prices reached record levels.

For England, prices grew 10.2 per cent to £275,000. In Wales, they were up 11 per cent to £185,000. 

Scotland saw growth of 10.6 per cent to £167,00. While in Northern Ireland, prices were up 6 per cent to £149,000.

Yorkshire and the Humber recorded the highest growth for a region at 14 per cent, and the lowest was in London at 3.7 per cent.

Positive and challenging

The mortgage sector interpreted the price growth as positive.

“This confidence in the market is hugely positive. However, with property prices continuing to increase, those trying to get on the ladder are going to struggle,” said Gareth Lewis, commercial director at lender MT Finance.

He added: “Government has a responsibility to make property more affordable.”

At Aldermore, head of mortgage distribution, Jon Cooper, said: “House price rises often indicate the health of the wider economy, so this is a positive sign for the UK’s recovery.”

He added: “We’re seeing a shift in preference as buyers seek more space and access to nature.”

Simon Furnell, chief operating office at Masthaven Bank, also noted, “the race for space,” in rural and suburban areas. 

But Furnell added: “It’s important that the sector and house buyers prepare for possible volatility once the stamp duty holiday deadline passes on 30 June,” — with specialist lenders having a role to play.

On the regional picture, Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With prices in Yorkshire and the Humber continuing to outpace London – as people no longer have to be in the capital as much as before – one hopes we end up with a more balanced housing market across the country.

Harris added: “Lenders have plenty of cash. . .  and it’s hard to see interest rates rising any time soon, which is good news for borrowers. But the impact of the pandemic means that some, such as the self-employed, still have to jump through hoops when it comes to getting a mortgage.”

Taking the wider investor’s perspective, SPI Capital chief executive, Anna Clare Harper, said: “The rise and rise of house prices is something we have become accustomed to. . . With construction costs rising, it’s easy to see how house price rises will continue over the coming years.”