Range Borrower type Property type Maximum loan & LTV

Transcription

1 Buy-to-let Mortgages Lending Criteria Guide issue 1 (March 2016). Buy-to-let Summary Range Borrower type Property type Maximum loan & LTV Standard Individuals Single residential units Maximum 1,000,000 to 70% LTV 600,000 to 75% LTV 400,000 to 80% LTV Specialist Corporate body (limited company, limited liability partnerships, etc.) Single residential units Maximum 1,000,000 to 70% LTV 600,000 to 75% LTV 400,000 to 80% LTV Individuals or corporate body Houses in multiple occupation (up to 6 bedrooms) Multi-unit freehold (up to 4 units) Maximum 1,000,000 to 70% LTV 600,000 to 75% LTV Tailored Individuals or corporate body High value single residential units High value houses in multiple occupation Houses in multiple occupation (7 bedrooms or more) High value Multi-unit freehold Multi-unit freehold (5 units or more) High value residential investment portfolios Block(s) of flats 10m* up to 75% LTV** *Loans in excess of 1m are by negotiation and individually priced for risk. **LTV is dependent property type aldermore.co.uk/btlhub FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. (Financial Services Register number: ). Registered office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough, PE2 6FZ. Registered in England No ARM

2 Credit status Standard Specialist Tailored Mortgage / secured loan arrears Unsecured loan arrears County Court Judgements (CCJ) / Sheriff Court Decrees Defaults Bankruptcy / Sequestration Individual Voluntary Arrangement (IVA) / Trust Deed Debt Relief Order (DRO) Payday loans Forced or Voluntary Possessions Business credit profile None in last 3 months No more than 1 month s arrears in last 12 months and no more than 2 months arrears in last 24 months (arrears over 24 months ago considered) None in last 3 months No more than 2 months arrears in last 24 months (arrears over 24 months ago considered) None registered in last 3 years CCJs registered more than 3 years ago but only satisfied in last 3 years acceptable if total balance does not exceed 500 (CCJs satisfied over 3 years ago considered) None registered in last 3 years (defaults registered over 3 years ago considered) Satisfied for 6 years None in last 6 months (payday loans over 6 months ago considered) Not accepted Any history of the following corporate gazette history within the last three years is not acceptable: Liquidations (Compulsory and Creditor), other than orderly winding-up of solvent companies Administration orders Winding up orders Receiverships Business CCJ is treated the same as personal CCJ Corporate Voluntary Arrangements (CVA) are treated the same as IVA Loan Standard Specialist Tailored Maximum LTV 70% 75% 80% 70% 75% 80% 75% Maximum loan 1,000, , ,000 1,000, , ,000 10m Purpose Minimum term Maximum term LTV restrictions may apply for multiple properties within the same development. Refer for further details. Purchase or Remortgage A purchase transaction involving a property that was previously sold within the last 6 months is not acceptable. (This will not apply when the property is being purchased from a housebuilder that acquired the property in a part-exchange transaction). 35 years 6 years 20 years Capital repayment 10 years Interest only Minimum loan Minimum 25,000 Minimum 50,000 Repayment types accepted Capital repayment or Interest only Applicants Standard Specialist Tailored Applicant types Individuals Individuals, partnerships, Limited Liability Partnerships (LLP), Private Limited Companies (LTD) and Public Limited Companies (PLC) that are registered and based in the United Kingdom and Northern Ireland (including Channel Islands and Isle of Man for Tailored BTL transactions). Guarantees For limited companies personal guarantees are required. Charge A fixed and floating charge will be taken over the assets of the limited company. Maximum applicants 2 Applicants 6 Applicants Minimum age Maximum age 21 years (for existing landlords) 85 years (at end of mortgage term) Age restrictions do not apply for applications from Limited Companies, Limited Liability Partnerships and established professional partnerships, where there is clear evidence of appropriate experience for the principals and they are capable of running the business as a going concern. Direct Debit Payments to the mortgage account are to be made monthly by Direct Debit from a bank account in the applicant s name. 2

3 First time landlords Standard Only A first time landlord (FTL) is an applicant who has not owned a BTL property, with or without a mortgage on that property, in the last 12 months. Requirements Minimum income of 25,000 Maximum loan size is 600,000 Maximum 75% LTV Minimum age of 25 years old (in a joint application where one of the applicants is not a FTL, a minimum age of 21 will apply to that applicant) Must own their own home, and satisfactory proof of mortgage conduct will be required for not less than the previous 12 months If a FTL applicant does not have a current mortgage, and there is no mortgage account visible on credit bureau, proof of property ownership will be required Remortgage Standard Specialist Tailored Remortgage period Remortgage from bridging Remortgage of an Aldermore bridging loan onto an Aldermore term product Remortgages within the first six months of the original purchase date are not normally acceptable. Remortgaging out of bridging finance provided by other lenders will be on a pound-for-pound basis only and capital raising will not be available. Where an Aldermore Bridging loan exits onto a term product: It will be free from the normal 6 month ownership rule (if held for at least 1 month) Capital raising in excess of the original bridging loan will be considered on any uplift in value confirmed by the original surveyor, subject to scheme limits Capital raising For property related purposes can be considered up to a maximum LTV of 80% For non-property related can be considered, up to a maximum LTV of 75% Capital raising for payment of taxes and consolidation of debts that have not been maintained satisfactorily is not permitted Deposit Standard Specialist Tailored Builder or vendor deposit Sales incentives provided by house builder Builder part exchange transactions Gifted deposits When submitting proof of deposit ensure that: Not accepted Acceptable if they relate to the payment of legal costs and stamp duty by the builder. The inclusion of white goods, floor coverings /curtains / blinds and the upgrade of kitchen / bathroom in the sale of a new build are also acceptable. The maximum value of the sales incentive should not exceed 5% of the purchase price. Accepted Acceptable in purchase transactions (excluding purchase at under-value from family members) where the deposit, or part of the deposit, is being funded by a non-repayable gift from a close relative. Close relative is defined as a parent, child, grandparent, brother, sister, uncle/aunt, foster parent or legal guardian and includes step relatives. In cases of a gifted element of deposit, a letter must be provided by the solicitor acting in the mortgage transaction confirming that the gift is non-repayable and that no charge will be registered on the security property as a result of the gift. Evidence is provided in the form of bank or building society statements or pass book in the applicant s name Any documentation provided is supplied in its original form without any kind of blanking out or alteration The documentation shows that sufficient funds are available, how the deposit has been built up and any lump sum transactions are explained Transaction Standard Specialist Tailored Discounted purchase price Let-to-buy and Consumer buy-to-let If the price being paid for the property is less than the full market value the solicitor acting in the mortgage transaction will be asked to confirm that the property is not subject to a transfer at undervalue or a deed of gift. If such a transaction is taking place or has taken place within the last 5 years, the solicitor must confirm to Aldermore that an acceptable defective title indemnity will be obtained. A transfer from single to joint ownership does not require indemnity if the transfer is simultaneous with completion. Standard only Let-to-buy definition Consumer buy-to-let definition A loan to refinance an applicant s current residence on a buy-to-let product (i.e. where the proposed security property is the applicant s current address), which can be accompanied with capital-raising toward the deposit for purchase of a new residence, is permitted. A buy-to-let remortgage transaction where: the residential property was previously occupied by the applicant/related person or was inherited. and the applicant does not already own other residential property that is also let (Note: the other property must not be let to a related person). Maximum loan and LTV Maximum loan of 600,000 and a maximum LTV of 75% Affordability / Serviceability Additional requirements Rental income for the existing property should be at least 150% of either (a) the existing mortgage payment or (b) the interest payable on existing mortgage balance(s) at the lender s standard variable rate in order to be considered self-supporting. If not available from valuation report the rental income should be confirmed by a reputable letting agent (i.e. Members of Association of Residential Letting Agents (ARLA), The Property Ombudsman scheme or The Royal Institution of Chartered Surveyors (RICS). If the property to be rented will not be self-supporting the income of the applicant(s) must be able to support both the existing and new loans and the application will be reviewed against buy-to-let and Residential affordability assessments. The applicant will be required to supply a copy of an offer to lend in the purchase of the new residence. If the applicant is moving to a property that is or will be unencumbered alternative documentary evidence of purchase/ownership must be provided. 3

4 Forward purchase Applications can be considered for the purchase of owner-occupied property, up to a maximum 80% LTV, where an existing owner-occupied residential property will not be sold and instead be let. The deposit must be from the applicants own resources, including any additional borrowing raised from the existing mortgage, and the letting must be on a formal recognised tenancy basis. If the existing mortgage is not with Aldermore a copy of the Consent to Let offer from the existing lender must be obtained. General Standard Specialist Tailored We do not lend on: Second charge mortgage Borrowing funds to satisfy CCJ, IVA and Bankruptcy Orders Property being acquired under an assignable contract Property being purchased with the assistance of a local authority grant Remortgage applications of a property previously purchased under Right to Buy and within the five year pre-emption period Applicant that has Power of Attorney for another joint applicant Applicants with diplomatic immunity Applicants employed on a commission only basis, unless applying jointly with another applicant and income is not being taken into consideration Applicants with seasonally based job (e.g. crop picker/holiday rep), or piece-workers, unless applying jointly with another applicant and income is not being taken into consideration Properties in Northern Ireland, Channel Islands or the Scilly Isles The following BTL applications are unacceptable, as they would constitute a Regulated Mortgage Contract: Where the borrower intends to reside in more than 40% of the property at any time during the mortgage term Where more than 40% of the property will be occupied by a close relative. Close relative is defined as spouse, civil partner, parent, brother, sister, child, grandparent or grandchild ID and Residence Standard Specialist Tailored Summary Proof of ID acceptable documents Proof of Residence acceptable documents Ensure that the documentation is: Aldermore uses an electronic identity verification system that checks application data against a variety of public databases. If electronic verification does not pass the expected threshold then proof of identity and residency, as appropriate, will be required. Valid UK Passport Valid UK Driving Licence Photo card (Full or Provisional) Valid Non UK passport or National ID Card HM Forces / Police Warrant Card Firearms certificate or shotgun licence Identity card issued by the Electoral Office for Northern Ireland HM Revenue & Customs correspondence relating to current tax year Utility bill Full driving licence Bank or credit card statement Latest Council Tax bill Current HM Revenue & Customs demand or notice of coding Valid and in date (statements and utility bills must be no older than 90 days old) Certified as a true copy (and likeness if photo ID) Signed and dated by an approved certifier (FCA/PRA authorised introducer or a professional person covered by Anti Money Laundering Legislation (AML) with their name printed) Nationality Standard Specialist Tailored UK and EU Nationals Non UK and EU Nationals Applicants must be UK or EU nationals and have been continuously resident in the UK for the last 2 years. The following will be considered as resident: Crown employees, including members of the diplomatic service, working overseas Members of the British armed forces stationed overseas We can consider non-uk and EU nationals providing they have been resident in the UK for the last 2 years and also have a non conditional and permanent right to reside. Affordability Standard Specialist Tailored Minimum income Rental calculation No minimum income for existing landlords, however applicants are required to demonstrate they have sufficient income to cover their existing expenditure. Rental is required to cover the higher of the initial product rate or the reversionary rate by the following multiple: All single residential units Capital repayment 100% Interest only 125% For both payment types, If rental cover is between 125% and 150% of the monthly interest, an additional stress test will be undertaken, taking into account surplus rental or personal income. All HMOs All Multi-unit freehold Interest only 185% Variable rate loans on capital repayment 165% Fixed rate loans on capital repayment rental is required to cover 100% of product pay rate and 165% of outstanding debt (at fixed rate expiry) at revert rate Interest only - 150% (for loans up to 1m 25% can come from background income) Variable rate loans on capital repayment - 140% Fixed rate loans on capital repayment - rental is required to cover - 100% of product pay rate and 140% of outstanding debt (at fixed rate expiry) at revert rate 4

5 Tailored loans over 1m Interest only 150% Variable rate loans on capital repayment 140% Fixed rate loans on capital repayment rental is required to cover 100% of product pay rate and 140% of outstanding debt (at fixed rate expiry) at revert rate Portfolio Standard Specialist Tailored Aldermore portfolio limit Portfolio limit with other lenders No property portfolio limit (portfolios in excess of 10 properties or 2m are considered under the Specialist and Tailored ranges with a maximum aggregate cap of 15m) No limit. Employed Standard Specialist Tailored History Acceptable income Additional income Verification of employed income The applicants position must be permanent The applicants must not be under notice of termination or redundancy The applicants must be able to demonstrate a minimum of three months record of employment immediately preceding the mortgage application in the same line of work Total gross annual income includes: Basic salary Up to 50% of profit related pay 100% of London weighting allowance 100% of shift allowance 100% of car allowance 50% of guaranteed and regular overtime/bonus/commission 100% of the following additional income can also be included: Income from trust funds Occupational pension income (state pension as the only source of income is not acceptable) Second and other jobs Investment income (only where supported by full accounts or SA302s/Tax Year Overviews) Rental income Aldermore will not accept any income derived from state welfare benefits or received in a foreign currency. One of the following is required: Latest P60 and payslips covering the latest three months (payslips from the same employer); or A Reference from the current employer Hand-written documents will not be acceptable and bank statements may be requested in support of poor quality references or payslips. Contract employment Standard Specialist Tailored Contract workers Professional sports people Applications from individuals that are employed on a contract basis are acceptable subject to the following: The current contract must be for a period of at least 6 months If the contract has more than 6 months to run the applicant must have been employed for a minimum of 12 months in the same line of work If the contract has less than 6 months to run the applicant must have a 2 year track record of employment within the same line of work It is acceptable for applicants to be paid via an umbrella company, which pays tax and NI for the applicant Original or certified copies of the current and previous contracts will be required to confirm that contract period meets criteria Where applicants are self-employed the standard policy relating to self-employment will apply. However, if the professional sportsperson is employed on a contract they must have been playing or competing professionally for at least two years and the current contract must have at least 1 year still to run. Additional income earned from endorsements will be considered if this can be evidenced. For applicants who are coming towards the end of their professional career it will be necessary to provide a satisfactory explanation, including supporting evidence, of how they intend to support the mortgage post career. Self-employed Standard Specialist Tailored Minimum trading period Classification Verification of self-employed income Professional Partnerships 2 years minimum trading period. Self-employed applicants may be classified into one of four categories: 1. Sole traders 2. Partners 3. Director private limited company (if 25% or greater shareholding) 4. Director public limited company (if 25% or greater shareholding) An applicant who is employed on a subcontractor basis will be classed as a sole trader If the applicant s shareholding of a limited company is less than 25% they will normally be classified as being an employee of the company Where joint applicants are directors of the same private limited company and their joint shareholding is greater than 25% of the company they will be treated as self-employed One of the following is required: Two years accounts (prepared or certified by a qualified accountant); or An accountant s certificate covering at the least the last two years; or Two years HMRC Self Assessment tax returns (SA302 s & Tax Year Overviews) Where the applicant is either a new partner or newly qualified it may not be possible for the partnership to verify actual income. In these circumstances written confirmation from a senior partner or practice accountant of projected future earnings may be acceptable. 5

6 Accountants Qualifications Aldermore will only accept accounts or accountant s certificates from practitioners with one of the following qualifications: Institute of Chartered Accountants (England or Wales) (ICAEW) can use the following letters: ACA & FCA Institute of Chartered Accountants (Scotland) (ICAS) can use the following letters: CA Chartered Accountants Ireland (CAI) can use the following letters: ACA & FCA Chartered Association of Certified Accountants (ACCA) can use the following letters: ACCA or FCCA Chartered Institute of Management Accountants (CIMA) can use the following letters: ACMA or FCMA Association of Authorised Public Accountants (AAPA) can use the following letters: AAPA or FAPA Association of Accounting Technicians (AAT) can use the following letters: MAAT or FMAAT Chartered Institute of Taxation (CIOT) can use the following letters: CTA Property Standard Specialist Tailored Summary Location Tenure Aldermore must have a first charge over the property and the security must be used for Residential Buy-to-Let purposes. England (including the Isle of Wight), Wales (including Anglesey) and mainland Scotland. Freehold (heritable title in Scotland) or leasehold (with 60 years unexpired at completion and 40 years at end of mortgage term). Minimum valuation 60,000 60,000 single residential units 75,000 HMOs, multi-unit freeholds and other properties Houses in multiple occupation (HMO) Requirements HMOs up to 6 bedrooms 7 bedrooms or more Standard Specialist Tailored In England & Wales an HMO is defined as a property occupied by at least 3 tenants, forming more than 1 household and share toilet, bathroom or kitchen facilities are shared. In Scotland a HMO is property occupied by 3 or more persons from 3 or more families, which is occupied by them as their only or main residence and basic amenities are shared. Applications on HMO property will only be considered for existing landlords with at least 3 years experience of letting property. For joint applications one of the applicants must be an existing landlord with at least 3 years experience of letting property. Property in England with C4 planning use or in Scotland up to 75% LTV Property in England with C4 planning use and Article 4 Direction up to 70% LTV Accepted up to 70% LTV Multi-unit freehold Standard Specialist Tailored Multiunit freehold A property that has more than one residence within it but facilities are not shared between occupants. Can be purpose built (such as a block of flats) or converted (such as a house converted to flats). up to 4 units Accepted up to 75% LTV 5 units or more Accepted up to 70% LTV New build properties Standard Specialist Tailored New build houses New build flats Guarantees/certificate New build is defined as built in the last 12 months, except where the proposed security property has been tested by the market (i.e. sold or let) within 12 months of construction/conversion. Accepted Not accepted (unless part of Specialist or Tailored buy-to-let transaction refinancing property development funding) Properties built within the last ten years must hold an acceptable guarantee/ certificate. Acceptable guarantees/certificates include: Build Assure Build Life Plans Build Zone Castle 10 (Checkmate) CRL (Construction Register Limited) Local Authority Building Control (LABC) NHBC certificate, Premier Guarantee Zurich Municipal Policy A certificate which states the property was built under the supervision of a person belonging to one of the following: fellow or member of the Royal Institution of Chartered Surveyors (FRICS or MRICS) fellow or member of the Institution of Structural Engineers (F.I.Struct.E or M.I.Struct.E) fellow or member of the Chartered Institute of Building (FCIOB or MCIOB) fellow or member of the Architecture and Surveying Institute (FASI or MASI) fellow or member of the Chartered Association of Building Engineers (FCABE C.Build E or MCABE C.Build E) member of the Chartered Institute of Architectural Technologists (formally British Institute of Architectural Technologists) (MCIAT) an architect registered with the Architects Registration Board (ARB). An architect must be registered with the Architects Registration Board, even if also a member of another institution, for example the Royal Institute of British Architects (RIBA) fellow or member of the Institution of Civil Engineers (FICE or MICE). In addition to the above qualifications, at the time the certificate of practical completion is issued, the consultant must have professional indemnity insurance in force for each claim for the greater of either: the value of the property once completed; or 250,000 if employed directly by the borrower or, in any other case, 500,000. 6

7 Ex-public sector properties Houses Flats and maisonettes Standard Specialist Tailored Local authority, housing association, Ministry of Defence, etc. Accepted up to 75% LTV, subject to the following conditions: No outstanding pre-emption requirement to repay a proportion of the discount Valuer indicating that there is evidence of a meaningful level of private ownership within the estate The property being of standard construction Can be considered up to 75% LTV, subject to the following conditions: Minimum property value of 150,000 ( 200,000 in Greater London) No outstanding pre-emption requirement to repay a proportion of the discount Maximum of 3 floors above the ground floor Secure communal access with no balcony access arrangements Valuer indicating that there is evidence of a meaningful level of private ownership within the estate The property being of standard construction Other property types Standard Specialist Tailored Holiday lets Not accepted Refer for consideration Flats above commercial premises Underpinned properties Japanese Knotweed Property types we do not lend on Flats situated above restaurants/takeaways/public houses/launderettes will be considered on a case by case basis up to a maximum of 75% LTV, except for flats immediately above takeaways which are restricted to a maximum of 60% LTV. Properties that have been underpinned in the last ten years must have a 20 year guarantee from a reputable company warranting the works completed and this must be placed with the title deeds. The valuer must also state that there is no sign of new movement. Aldermore will require the solicitors to confirm in writing, prior to completion, that the buildings insurers are aware of the problem and are willing to cover on normal rates and terms. If there is Japanese Knotweed present within the boundary of the property or neighbouring properties one of four categories will apply: If category 1 applies no report or action is required unless recommended by the valuer. If category 2 applies each case will be reviewed on its individual merits, taking into account the valuers advice. If category 3 or 4 applies a full report and detailed treatment plan will need to be carried out by an appropriately qualified person who is a member of the Property Care Association. When treatment is required it must be carried out by a member of the Property Care Association, backed by a minimum 10 year insurance guarantee programme, and no mortgage funds will be released until the first part of the treatment programme has been undertaken. The guarantee must be property specific and transferable to subsequent owners and mortgagee in possession. If the valuer reports that the presence of Japanese Knotweed on the property or neighbouring land (e.g. very close to the boundary) is an unacceptable threat to the subject property the application will be declined. Property with Planning Use Classes Order other than: C3(a)(b)(c) C4 (including HMO with an Article 4 direction in place) HMO with Sui Generis planning use Property subject to a shared ownership deed Property with pre-emption clauses in existence Mobile homes Houseboats Property held on a Commonhold basis Freehold flat or freehold maisonette Property where a flying freehold exists and affects more than 15% of the total floor space Property with restrictive covenants or saleability; e.g. retirement homes/houses or apartments found within a holiday park and sheltered housing schemes Farms, smallholdings or properties with agricultural restrictions in place Serviced flats/apartments Studio flat and/or flat with a total floor area of less than 30sq meters Flat in a block with more than three floors above ground floor and which does not have a lift Notes: top floor and attic can be considered as one floor, if they are part of the same flat Bespoke student accommodation (can be considered by Commercial Mortgages as a Commercial Investment transaction) Prefabricated building and unrepaired PRC construction Property listed as defective under the 1984 and 1985 housing acts unless rebuilt to NHBC standards and with appropriate guarantees. The adjoining properties must also have been repaired to the same standard. Wimpey No-Fines (if constructed prior to 1946 or bungalow or flat) Laing Easiform construction (if constructed prior to 1966 or bungalow or flat) Property where high alumina or Mundic block cement has been used in the construction Timber framed property that does not have a brick or block and rendered outer skin Steel framed constructions except post-1987 construction within BBA or WIMLAS certification Property constructed using concrete Large Panel Systems (LPS) Property on which there is a local authority grant outstanding Live/work units (unless part of Tailored BTL transaction) Property with an anticipated lifespan of less than twenty-five years beyond the end of the mortgage term and/or where the condition significantly affects marketability Property with no kitchen Single residential investment property with more than two kitchens Property with no bath/shower room Property which has shared access where a relative of the applicant resides in the other property Property which has any shared services with any adjoining or adjacent property which does not form part of our security Property which is being bought from the applicant s own limited company (unless Tailored BTL transaction) Grade 1 listed or Scottish equivalent Grade A listed security Where satisfactory tenant demand does not exist or the proposed security is considered unsuitable for private renting 7

8 Valuation definitions Standard Specialist Tailored Market value (vacant possession) Market Value (Investment) The current value of the property in its present condition, with the benefit of full vacant possession. The following will be valued on a vacant possession basis: Single dwelling Buy-to-Let properties Multi-unit freeholds HMO up to 6 bedrooms with C4 use where no Article 4 Direction in place The valuation of the above will be based on comparable sales of similar size dwellings in locality and the LTV will be based on the vacant possession value. The current value of the property in its present condition, with the benefit of the current rental income. The following will be valued on a yield basis, as a single investment: HMO up to 6 bedrooms and an established C4 use with an Article 4 direction in place HMO with over 6 occupants and Sui Generis use The Investment Valuation will be based on a gross yield with three comparables used to support the adopted yield. The following conditions will apply: The HMO must have planning permission and buildings regulations as a HMO The 2 part licence must be in place on completion, if appropriate Where the above is not confirmed in full, a vacant possession basis will apply Tenancy Standard Specialist Tailored AST Period High value tenancy Student lets Corporate lets DSS and regulated tenancies An AST for a period of between 6-36 months can be considered (unless the annual rental exceeds 100,000 per annum) Where the rental income exceeds 100,000 per annum, Aldermore will require our own format tenancy agreement to be put into place. Acceptable if all occupants are on a single AST agreement and are jointly and severally liable for the rent. Multiple AST agreements accepted Acceptable providing they are for no more than 5 years in duration and let directly to a registered providers of social housing or Public Limited Companies (PLC) Refer for consideration Fees Standard Specialist Tailored Fees Completion and electronic transfer fees can be added to the loan Where fees are added they will be excluded from the LTV calculation but will be included in the affordability assessment Fees added to the loan will attract interest over the mortgage term Solicitors Standard Specialist Tailored Aldermore Panel Separate legal representation Free legal fees England & Wales: Must have a minimum of 4 partners in the firm, must be registered on the Law Society of England & Wales (website: must hold the Conveyancing Quality Scheme (CQS) accreditation and subject to acceptance onto the Aldermore panel. Scotland: Must have a minimum of 3 partners in the firm, must be registered on the Law Society of Scotland (website: solicitor) and subject to acceptance onto the Aldermore panel Aldermore will require legal representation on loans above 400,000 ( 600,000 in London and South East England) through its nominated Solicitor. Applicants can choose to use the same Solicitor and benefit from competitive conveyancing costs, or take independent legal advice. Aldermore currently offers free legal fees for all individual, single residential unit, remortgages, through its nominated Solicitor and will pay for the costs of the legal work necessary to move the mortgage to Aldermore. Costs incurred for any additional work must be paid by the applicants. Aldermore Bank PLC will instruct its own Solicitor. Applicants can choose to use the same Solicitor (dual representation) at additional cost (subject to agreement with the acting Solicitor), instruct their own Solicitor, or remain unrepresented where the transaction is a remortgage (third parties may be required to have separate legal representation). Solicitors acting on behalf of the applicant must have a minimum 3 partners London and the South East area is defined below Greater London: E (East London), EC (Central London), N (North London), NW (North West London), SE (South East London), SW (South West London), W (West London), WC (West Central London). South East: BN (Brighton), BR (Bromley), CT (Canterbury), CR (Croydon), DA (Dartford), GU (Guilford), HA (Harrow), HP (Hemel Hempstead), KT (Kingston upon Thames), ME (Medway), OX (Oxford), PO (Portsmouth), RG (Reading), RH (Redhill),SL (Slough), SM (Sutton), TN (Tunbridge Wells), TW (Twickenham), UB (Uxbridge), WD (Watford) aldermore.co.uk/btlhub FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. (Financial Services Register number: ). Registered office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough, PE2 6FZ. Registered in England No ARM