New five-tier residential mortgage approach to help customers

Aldermore has introduced a new five-tier lending approach that it says is designed to help brokers find solutions for customers who fall outside mainstream lending criteria, such as first-time buyers, self-employed applicants, contractors and customers with complex income or a history of adverse credit.

Through the five distinct lending tiers, the company says it will be able to consider a wider range of individual circumstances and help brokers identify the most appropriate solution for each customer.

In addition, the company has also announced enhancements to its residential lending criteria, including an increase in the maximum loan-to-value limit to 98% for employed customers, acceptance of unsecured credit or utility bill arrears, increased tolerance for county court judgments and defaults and more flexible treatment of secured credit arrears.

A more specialist approach

Jon Cooper, director of mortgages at Aldermore, said: “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.

“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.

The company will announce further product enhancements later this week.