Aldermore is to introduce a five-tier residential lending range aimed at borrowers whose circumstances may not meet mainstream mortgage criteria.

The lender will launch the approach on Wednesday 29 July, offering brokers a choice of tiers intended to accommodate a broader range of customer circumstances.

The proposition includes support for first-time buyers with deposits of 2%, with no minimum deposit amount applied, as well as self-employed applicants, company directors, contractors and borrowers with complex incomes or a history of adverse credit.

Aldermore said the five tiers would allow it to consider individual circumstances and help brokers identify an appropriate lending option for each customer.

RESIDENTIAL CRITERIA CHANGES

The lender will increase its maximum loan-to-value ratio to 98% for employed borrowers. It will also accept unsecured credit or utility bill arrears, increase its tolerance of county court judgments and defaults, and apply more flexible treatment to secured credit arrears.

Jon Cooper, director of mortgages at Aldermore, said: “We know brokers are supporting customers with increasingly diverse financial circumstances, and they need lenders that can take a more specialist approach.

“Whether a customer is self-employed, has multiple income streams or is recovering from a previous credit issue, they deserve a fair assessment of their individual circumstances.

“Our enhanced five-tier cascade range gives brokers greater flexibility to support more residential clients across a broader range of credit profiles, making it easier to find the right lending solution with confidence.

“It’s another step in our commitment to helping customers who don’t fit traditional high street criteria move closer to homeownership.

“We’ll continue to invest in our proposition, with further product enhancements to be announced later this week.”