Packaging Guide. Mortgage Applications.

Transcription

1 Packaging Guide. Mortgage Applications. Loans 25,001 to 250,000 The purpose of this guide is to help our Broker Partners in submitting packaged applications to Aldermore. These pages set out the minimum information that is required to obtain a decision on applications above 25,001 to 250,000 assuming 100% clean credit searches and debt service coverage ratio achieved. Convert more business now. Call or visit expertise. applied

2 Investment Properties Commercial & Residential. Loan Size: Less than or equal to 100,000 & LTV less than or equal to 60% Evidence of rental income (Valuation, copy of the lease / AST, bank statements; accountants letter i.e. something to prove rental income). Loan Size: Less than or equal to 100,000 & LTV more than 60% Evidence of rental income (Valuation, copy of the lease / AST, bank statements; accountants letter i.e. something to prove rental income). Personal income needs to be verified by way of 3 months payslips, P60 or SA302. Loan Size: More than 100,000 less than or equal to 250,000 & LTV less than or equal to 60% Evidence of rental income (Valuation, copy of the lease / AST, bank statements; accountants letter i.e. something to prove rental income). 2 months rental bank statements only. Personal income needs to be verified by way of 3 months payslips, P60 or SA302. Loan Size: More than 100,000 less than or equal to 250,000 & LTV more than 60% Evidence of rental income (Valuation, copy of the lease / AST, bank statements; accountants letter i.e. something to prove rental income). 2 months rental bank statements plus 2 months personal or business bank statements. Personal income needs to be verified by way of 3 months payslips, P60 or SA302. Relevant information re background businesses and personal mortgage information.

3 Owner Occupied Properties. Loan Size: Less than or equal to 100,000 & LTV less than or equal to 60% Loan Size: Less than or equal to 100,000 & LTV more than 60% If Debt Service Coverage Ratio achieved, 3 months business bank statements only. No personal income information is requested. Loan Size: More than 100,000 less than or equal to 250,000 & LTV less than or equal to 60% If Debt Service Coverage Ratio achieved, 3 months business bank statements only. No personal income information is requested. Loan Size: More than 100,000 less than or equal to 250,000 & LTV more than 60% If Debt Service Coverage Ratio achieved, 3 months business bank statements only. Information re background businesses verified. If the application fails to meet on DSCR requirements or the credit search reveals adverse credit information, we will require further information which may include: 3 months personal and business bank statements. Asset and liabilities statements. Income and expenditure statement. Background business and personal mortgage information. Proof of personal income.

4 Packaging Guide. Mortgage Applications. Loans above 250,000 The purpose of this guide is to help our Broker Partners in submitting packaged applications to Aldermore. These pages set out the minimum information that is required to obtain a decision on applications above 250,000 assuming 100% clean credit searches and debt service coverage ratio achieved. Convert more business now. Call or visit expertise. applied

5 Investment & Owner Occupied Properties. Loan Size: More than 250,000 Aldermore completed credit searches. Certified Identification & Verification of Address. 3 months Bank Statements both business and personal. (3 months rental statements if investment). Latest 3 years full accounts/3 years tax returns/proof of employed income. Satisfactory Valuation report from a Panel Valuer. Proof of deposit. Redemption statement(s). 12 months mortgage history. Please see following pages for further clarification.

6 Application Form Please ensure that this is signed by all applicants and all necessary sections are fully completed. If you use your own application form we shall use this to consider the application but a condition of any offer will be that an Aldermore application form is fully completed and returned to us. Additional Security Please complete and enclose this supplementary form providing details of any property that is available for additional security when considering the application. We regard 2 nd Charges as supporting security and the usual method of calculating the lending value of that security is by taking a maximum of 70% loan to value on any additional property being offered and deducting the amount of the 1 st charge. We shall require a first mortgagee s reference/statement and a valuation. (On occasions due to the type and condition of a property or from a credit risk perspective we may need to reduce the LTV% below 70%). Please ensure we are made aware of any arrears on the refinance of any additional security. Credit search Clean credit history. A maximum of five County Court Judgements (CCJ), within the last 60 months will be considered. If the CCJs total less than 1,000, were registered more than 12 months apart and they are recorded as being either set aside or satisfied then no explanation is required. If the total value of the CCJs is greater than 1,000 but less than 5,000, or where more than 3 of them were recorded within a 12 month timeframe then a satisfactory explanation is required. Where there are outstanding CCJs of any value, a satisfactory explanation is required and should be settled prior to completion. There should be no history of any bankruptcy within the last three years. Where the bankruptcy occurred prior to this a full explanation should be obtained along with evidence of satisfactory credit conduct since that time. There should be no evidence of missed mortgage or secured loan payments within the last 36 months, save where it can be evidenced that the missed payments are due to exceptional circumstances. There should be no history of directorships of liquidated/wound up companies within the last three years, unless a satisfactory explanation can be provided. Where the business failure occurred prior to this an explanation of the events may be requested and there should be evidence of satisfactory credit conduct since then. Identification & Verification of Address Copy Identification & Verification documentation needs to be certified by either an FSA Regulated Broker or professional person such as a Solicitor or Accountant. Bank Statements We require copies of personal, rental and business bank statements for the last 3 months. Online printouts are acceptable if certified by the issuing bank to confirm authenticity. Accounts

7 Employed Income We require either the applicant(s) last 3 payslips, latest P60 or an original letter from the employer confirming their annual gross income and that their position is permanent. Please ensure that if the clients provide a letter from the employer that it is on headed paper and that it is completed by a manager or the HR department. Property Valuation process Once Aldermore has confirmed the mortgage terms, Aldermore will control the valuation process and/or any readdress of an existing valuation carried out by an Aldermore panel Valuer. Loan to Values (LTVs) for lending purposes are calculated using the criteria specified in our Product Information. Aldermore will advise the cost of the Valuation and this will need to be paid to Aldermore payment can be made by debit or credit card, sending a cheque made payable to Aldermore or by direct Bank transfer (please call for further details). Aldermore operates a Panel of Valuers who have agreed to carry out valuation reports in accordance with Aldermore s strict requirements. Some valuers only carry out Commercial/Investment Valuations and other Business Valuations, with a few able to carry out both. Please note that at the point of completion, the valuation report cannot be any more than 4 months old. Buildings Insurance We require on all purchase and refinance cases full and satisfactory buildings insurance to be in place on completion. Please provide a copy of the insurance schedule which should confirm; The minimum sum insured matches the reinstatement value quoted on the valuation report. Necessary risks and perils are insured including fire, flood and possibly subsidence. The Policy property cover must be index linked. Aldermore must be noted as an interested party (mortgagee). Aldermore does not accept confirmation of insurance from anyone other than the insurer. Proof of purchase price On all purchase cases we will require our solicitor s to confirm with reference to contracts the purchase price. Aldermore will lend against the lower of purchase price or valuation. The only exception to this would be a sitting tenants purchase. Proof of Deposit Aldermore will require full proof of deposit monies. If the deposit is from savings then we will need to see the appropriate documentary evidence of the funds building in the clients account. If the deposit is being raised by way of additional finance on any other property we will require details of this offer. If the bank account shows large sums being paid into the clients account then we will require evidence of the source of these deposits. If the clients are receiving a financial gift we will require a letter from the person gifting the deposit funds confirming the amount and that no repayment is due. Our solicitors will need to satisfy themselves in this regard i.e. Deed of Gift & Declaration of Solvency.

8 Redemption Statements A redemption statement from the intermediary confirming the total redemption figure required to clear all charges on the security we are being offered may help to speed matters along. Our Solicitors will ask the existing lenders for up to date redemption figures if the redemption date on the statement provided has been passed or there is no redemption statement. Mortgage history (for re-mortgages only) Aldermore requires a 12 month history on any mortgages or loans registered against property we are being offered as security. We will accept the following as satisfactory mortgage history; 12 month mortgage statement issued within the last three months. 12 months bank statements showing the direct debit payment to the mortgagee. A letter from the Lender(s) confirming that there have been no arrears in the past 12 months. If there is a history of arrears, we will require this letter to detail how many and which payments were missed. A lenders reference or Building Society Questionnaire. That the statement applies to the security address not the client s correspondence address. If you have photocopied any statements then please ensure you certify the photocopies before they are forwarded to Aldermore. Limited company information When Aldermore are lending to a limited company equity holding Directors may be required to give their full personal guarantees. Aldermore always obtains a Companies House search confirming the current Director s and status of the company.

9 Convert more business now. Call or visit expertise. applied FOR INTERMEDIARY USE ONLY Aldermore Bank PLC. Aldermore Bank PLC is authorised and regulated by the Financial Services Authority. Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough, PE2 6FZ. Registered in England No Telephone calls may be recorded or monitored for security and training purposes. Calls to 0333 numbers are charged as a standard landline number, even from a mobile phone. ARMXX-1011-XXXXXX