A spokesman for Aldermore said the lender was not dependent on the wholesale money markets, and funded its business through retail deposits.
It has “significant ambition in the residential and buy-to-let markets, and wants to be taken seriously by intermediaries.”
Aldermore is confident it can provide funding to meet high demand for its products.
The lender has released details of its residential and buy to let products this afternoon after the spokesman confirmed Aldermore is set to announce a launch date by next Friday.
Loans for both house purchase and remortgaging will be available up to 80% loan to value and applicants will have a choice of 2-year discounts starting from 3.98% and 3 and 5 year fixed rates starting from 4.93%.
Aldermore’s target market is credit worthy borrowers who have failed the credit scoring undertaken by high street lenders. It says products will be suitable for borrowers rejected by, “lenders that no longer employ skilled and experienced underwriters.”
Aldermore will not accept borrowers with IVAs, bankruptcy, any mortgage arrears in the past 12 months or CCJ’s/defaults in the past 36 months.
Packager 3mc is one of the independent distribution partners testing the range.
Managing director Doug Hall said: “Aldermore’s potential market is huge and there is definitely big demand for Aldermore’s product range.”
In the buy-to-let market, Aldermore is targeting experienced buy-to-let landlords who are unable to remortgage or finance new properties due to the lack of buy-to-let funding.
It believes there is growth potential in buy to let which it says is “desperately underfunded”, and brokers suggest there is a lack of competitive products available on the market.
Mortgages will be available up to 75% LTV for the purchase or remortgage of a single property, with a choice of 2-year discounts starting from 4.98% and 3 and 5-year fixed rates starting from 5.78%.
The lender is currently processing real customers’ applications on the full range of its products via a limited distribution.
Assuming a successful outcome, Aldermore says it anticipates being able to open its doors for business during the next few weeks.
Rumours suggested that the lender had planned to launch on Monday 17th May, a date since denied by the lender.
Aldermore has opted for limited distribution, with a select panel of intermediaries via leading mortgage networks and clubs including: 3mc, BDS, Legal & General, Mortgage Intelligence, Mortgage Next, Pink, PMS, PTFS and Sesame.
Appointed representatives and directly authorised mortgage brokers will have to register via their network or club before they can submit applications online at www.aldermore-mortgages.co.uk
Colin Snowdon, chief executive of residential mortgages at Aldermore, told Mortgage Introducer he hopes to be able to announce a launch date soon.
He said: “Our testing has shown that it will take brokers no more than a few minutes to submit a case online and get a decision in principle and we have a team of experienced underwriters here in Wilmslow who are ready to help applications complete as quickly as possible.
“I encourage brokers to now go online and see for themselves what we have to offer.
“We are taking a fresh perspective on the mortgage market, with a range of products designed to help creditworthy borrowers who are being frustrated by onerous credit scoring systems and a lack of available funding.”
