Aldermore targets non-conforming borrowers

The new product range, to be launched during the second quarter of 2010, will help those who have been turned away by lenders who are using high credit scores and low LTVs to control business volumes.

Colin Snowdon, chief executive, residential mortgages, at Aldermore, said: “Thousands of perfectly creditworthy borrowers are being denied access to the mortgage market by lenders who rely on credit scoring and refuse to consider cases which fall outside the norm.

“Take, for example, an application from a self-employed person with income being generated via multiple sources. If the income can be proven or verified by an accountant, that’s fine with us.”

Aldermore says it will consider a wide range of factors which may cause creditworthy applications to fail credit score, including:

• a recent home or job move

• satisfactorily resolved minor historic credit issues

• self-employment

• applicants living temporarily in rented accommodation, after selling their previous home

Brokers can submit applications online, where they will have access to a real-time case tracking facility. Unlike other lenders, Aldermore will not rely on an automated credit scoring system and will assess applications using a criteria and rules-based approach and skilled underwriters.

Aldermore’s buy-to-let products will give brokers and landlords greater choice at a time when there is a shortage of both funding and products.

Colin Snowdon confirmed: “The buy-to-let market is currently suffering from a dearth of funding and our research tells us that brokers will welcome a new lender and greater product choice with open arms. It’s our intention to further develop our buy to let offering over the coming months and we look forward to working with our distribution partners to identify appropriate opportunities.”

Aldermore will not ‘dual price’ mortgages, which will only be available via intermediaries. Interest rates will reflect the nature of Aldermore’s products, which will sit between rate led, high credit score, low LTV mortgage deals and products which would have been marketed in the past by more specialist lenders. Full rate and product details will be published shortly.