We understand this is a really unsettling time for everyone and want to let you know that we’re here for you. We’d like to keep you up to date on what we’re doing to support you and your mortgage clients during this challenging time.
We’ve set up a dedicated webpage so you can find all the latest information for your clients. We’ve also developed some broker Q&As which we’ll continue to update in response to the COVID-19 government measures and any changes we need to make to the way we work with you.
Here’s a summary of what we think is most important for you to know right now:
Product and criteria changes
The Bank of England made two base rate decreases this month:
• 11 March – decreased from 0.75% to 0.25%
• 19 March – further decreased from 0.25% to 0.10%.
In response to these changes, we’re decreasing the Aldermore Managed Rate (AMR) by 0.65% from 5.23% to 4.58% from 01 May. We’ll be writing to impacted customers by mid-April to let them know how it reduces their monthly mortgage payments.
We’ll continue to update you on any product or criteria changes in the usual way, as well as updating our lending criteria and mortgage guides on the intermediaries website.
Here’s a reminder of the way that we do business with you, as well as a few changes that we’ve made:
• We’re doing our best to keep within our 24 hour DIP SLA but please bear with us over the next few weeks
• You’ll need to submit a full application within 30 days of a DIP ‘accept’, as it will expire after 30 days
• If you need to re-submit a DIP, you’ll need to select from the product rates and range that’s available at the time of submission
Underwriting a new application
Our human approach to lending considers each case on an individual basis and this hasn’t changed. We’re here to support you and help you find the right mortgage for your clients but we’ll need to:
• Understand the impact of COVID-19 on the borrower and their ability to service the mortgage, both now and in the future
• Look at the applicant’s current situation in more detail, particularly for the self-employed and employees in high risk sectors
• Establish if there have been any material changes to income or employment since DIP submission
• Continue to review our approach to income assessment and our treatment of contract workers and probationary periods
To continue to support our customers, we’re replacing physical valuations with remote valuations.
Remote valuations will be requested on applications that meet the following criteria:
- Owner occupied properties
- BTL Single Units
- Inside M23 £1M
- Outside M25 £750K
- 85% Owner occupied
- 75% BTL
Please note that any application that doesn’t meet the above criteria will be placed on hold including:
• Properties adjacent to commercial premises
• Properties in poor/derelict condition
• New Build properties
• HMO/MUF properties
• Properties with more than 2.5 acres
• Leasehold properties with less than 100 years remaining
• Portfolio applications with more than 5 properties in the same block or postcode area
Customers should follow the Government’s guidance on buying and selling homes during the Coronavirus stay at home period.
Pipeline applications pre-offer
• Our applications continue to remain valid for 50 days, allowing you sufficient time to obtain the necessary supporting documents to secure an offer for your client*
• We’ll continue to update you on the progress of applications, acknowledge new document uploads or contact you if any requirements have been outstanding for a while
*If we’re unable to undertake a valuation and the case reaches 50 days then we will need to review the application again based on your client’s individual circumstances and the product rates and range available at the time
Mortgage offers and completions
UK Finance recently announced lenders would provide a 3 month extension to any borrowers who have exchanged contracts but are having to delay moving home due to government advice. We’re supportive of this position and are working to accommodate this for applicants. If your client’s individual circumstances change during this time, we’ll work with you and your client to agree a sensible outcome.
We are continuing to process re-mortgage completions but would ask that sufficient notice is given to release funds in line with guidance issued to solicitors.
We’re continuing to offer product switch mortgages to your existing customers. Email our product switch team on email@example.com to get started.
How to get in touch
We’ve set up some new email addresses as our telephone lines are exceptionally busy at the moment. We’re also keeping our website updated with our current SLAs so you know how quickly we’re dealing with your requests.
• New business enquiries firstname.lastname@example.org
• Product switch email@example.com
• Existing business submitted through our residential portal firstname.lastname@example.org
• Existing buy to let business submitted through our commercial portal email@example.com
30 March 2020