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Brokers confused over Aldermore lending criteria

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.”


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  1. Blimey! A news item about a single underwriting decision!

    It seems like lenders who are willing to “take a view”, and not base their decisions on black and white criteria, or, indeed those who do not rely on credit scoring, still cannot please all the people all the time.

    The fact is, that Aldermore will look at cases that most lenders will not, and I believe this is a good thing. The fact that they have lent in significant volumes since launch, seems to indicate that this type of approach to underwriting is refreshing in the current climate.

    Unfortunately however, they will not be able to write every case, and sometimes, brokers must be prepared to accept that the reasons for decline cannot be disclosed.

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