Any experience of Aldermore Bank?

AndreaG67

A mortgage broker has recommended Aldermore Bank to me. Has any one had any negative experience with them? I hadn't heard of them until today.

Leon_W

Absolutely fine.

Niche lender so I'm guessing you're not "straightforward". Either that or a Buy to Let.

Either way I've had no problems with them.

BMSrachael

Oooh, I also want to know about this! Interested in their guarantor mortgage, as struggling with small deposit at the moment. Limited information available though, as you said.

GMS

BMSrachael wrote: »

Oooh, I also want to know about this! Interested in their guarantor mortgage, as struggling with small deposit at the moment. Limited information available though, as you said.

Do you mean their 100% mortgage?

BMSrachael

I think it is 100% yes. We have a deposit but its not looking likely we'll get a 95% mortgage and my parents are offering to guarantor. Its the only guarantor mortgage I've heard of (not that my knowledge is particularly wide).

GMS

You can borrow up to 100% of the purchase price.

For any amount over 75% of the value a guarantee is required in the form of a charge on a parent's (typically) property.

The charge remains for 10 years or until paid off if earlier. Guarantee is capped. Unlimited overpayments allowed to reduce the guarantee balance, or if property value rises to leave a 75% LTV it can be removed.

Lender have manual underwriting not credit scoring.

It is not available directly so would need a broker.

Information leaflets are available.

BMSrachael

Oh, excellent thank you for that. What do you think of it? Is it worth doing, or better just to wait? When you say no credit scoring underwritten only, do you think someone with less than perfect credit is likely to be successful or are the criteria quite strict? (In terms of me, not the guarantor)

GMS

BMSrachael wrote: »

Oh, excellent thank you for that. What do you think of it? Is it worth doing, or better just to wait? When you say no credit scoring underwritten only, do you think someone with less than perfect credit is likely to be successful or are the criteria quite strict? (In terms of me, not the guarantor)

It is a good product in that it allows you to puchase a property with no deposit. However it requires putting your parent's property at potential risk.

If your parent's are willing to help then it is a definite option. Plenty of parents are remortgaging their properties to give cash deposits to children which then leave them with a monthly payment. The Aldermore mortgage means no payments by the parents with full repsponsibility for the mortgage on the shoulders of the children.

Worth considering income protection and life insurance with this in my opinion.

The no credit scoring will not mean poor credit is allowed, just that the decision will be made by an underwriter not a computer.

If you are happy to wait and save more in order to get a more conventional mortgage then that could be the answer.

Rate on the Aldermore product is 6.48% fixed for 3 years, obviously higher than a 90/95% mortgage.

Independent legal advice is required for the guarantors and all parties need to be fully aware of the potential pitfalls. Positives are no deposit and the restrictions on the guarantor are set in stone.

BMSrachael

Certainly worth thinking about, thank you.