Aldermore announced some product changes. See below for more information. For information on their current products and criteria call our team or click here. REMEMBER, you can access the Aldermore range using our Direct to Lender mortgage club so do contact us for further information. For any Documents Click here. Calculators Click Here.
Change to how we assess personal income – BTL landlords
Personal income verification change for buy to let application
We’re always looking for ways to improve our application journey and from 6 March 2023, we’re making changes to how we assess income for buy to let applications.
We understand that rental income is the key driver for affordability for buy to let applicants, so for most applications, we won’t routinely request verification of a landlord’s personal income.
This will help to enhance the application process for the majority of cases.
When will personal income verification be required?
- All residential owner-occupier applications.
- Buy to let applications where the applicant needs to use surplus personal income (top-slicing) to meet minimum interest coverage ratio (ICR) hurdles.
- Buy to let applications from first-time landlords.
- Buy to let applications where the applicant is declared as being a basic rate taxpayer, and we need to validate to confirm they qualify for a lower ICR hurdle. Only required if they don’t meet the higher ICR hurdle for high rate tax payers based on the rent alone.
Reduced rates and simple switching
We recently reduced our 2 and 5 year product switch rates for existing residential owner occupied and buy to let clients. Check out all our product switch rates here.
But we haven’t stopped there…
We’ve also made it even easier for you to switch your clients.
Now, even if you didn’t organise your client’s current mortgage with us, you’ll no longer require a customer declaration form in order to switch them to a new rate.
So if you’re looking to switch a client who’s mortgage can’t be switched through the portal, just make sure you have their full permission and then give us a call on 0333 321 1000, or email us at [email protected].