Mortgage brokers say there is a lack of clarity over what cases new lender Aldermore will accept.
Aldermore, which launched in May, markets itself as targeting borrowers that do not meet high-street lenders’ criteria but are still creditworthy.
Chadney Bulgin director of mortgages Jonathan Clark approached Aldermore with a client who was in arrears due to an admin error when new payment terms were agreed with initial lender Clydesdale Bank. Clydesdale agreed to a reduced payment scheme for three months but when the client tried to move house his credit score showed he was three months in arrears. Aldermore rejected the case.
Clark says: “I thought this was a textbook Aldermore case. The client had lots of income, 40 per cent LTV and Aldermore put the phone down on me. I am not yet sure what it has set out to do.”
Aldermore residential mortgage chief executive Colin Snowdon says: “Overwhelmingly, the two main areas where cases are declined are adverse credit and affordability.”