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Saturday, September 23, 2017

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Aldermore reveals new application process ahead of PRA changes

Martin Greenland | 14:27 Friday 8th September 2017

Aldermore has announced that it has made new documents available to brokers and landlords in advance of the changes to the PRA buy-to-let underwriting standards.

The new PRA underwriting standards will be introduced at the end of September and will require portfolio landlords to provide additional documents to support their applications.

Documents required for portfolio buy-to-let applicants:

• business plan and portfolio schedule – both documents need to be completed for all portfolio landlord applications
• cash flow forecast and statement of assets and liabilities – both documents need to be completed (in addition to business plan and portfolio schedule) if the portfolio landlord client has 11 or more mortgaged properties with Aldermore at completion.

As these changes are implemented, Aldermore said that it remained committed to providing the best possible support to brokers and their portfolio landlord clients, who under the new regulation will be defined as those who have four or more mortgaged buy-to-let properties.

Portfolio affordability testing, rental income validation by postcode and, where personal income is used, assessment of living costs and essential expenditure will also be checked.

“We recognise there are big changes afoot and as a business we have focused our attention on ensuring our brokers are best placed to meet these required changes,” said Charles McDowell, commercial director for mortgages at Aldermore.

“We want to give them and their portfolio landlord clients as much time as possible to understand what is required in light of the new rules, which is why we have published these new documents ahead of the deadline to give them this peace of mind.

“As an industry, we need to constantly work to reduce administrative burden, to ensure we are freeing up brokers to add value to their clients.”

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