Guidance notes for keying Residential Buy-to-Let property under limited company structure Enquiry
A step-by-step guide We know that submitting cases can sometimes seem complicated and time-consuming (especially if you re new to this particular process), but our guide is here to make things as simple and easy for you as we can. It has step-by-step instructions to help you with every stage and is designed to work alongside the portal as a split screen so you can follow each numbered step as you do it. We ve also included answers to FAQs at relevant points and handy tips to help you complete this process as quickly and smoothly as possible. Enquiry guidance notes 2
1 Login page To get started you ll need to log in, if you haven t yet registered with Aldermore, you can do this here: Go to registration If you have already registered on our Residential system please call your telephone based BDM. i Top Tip: Remember to check the message box as we use this space to tell you any key updates. 2 Home page Once you have logged in, the homepage displays lots of useful information such as starting a new application, tracking progress on an existing application and amending your personal profile. 3 Getting started To start a new Decision in Principle (DIP) please click Enquiry. Enquiry guidance notes 3
4 Enquiry pages Intermediary declaration Whenever you key a new DIP you will need to accept our intermediary declaration. 5 Applicant and loan type Please select Limited Company from the drop down menu this applies if the applicant is a limited company, Special Purpose Vehicle (SPV) or existing trading company, we will then need all the information related to the limited company. Please note we accept limited companies setup for the sole purpose of managing property interests and have no minimum trading requirements. i For Buy-to-Let applications the applicant will not be able to select Yes to a close family relative occupying more than 40% of the proposed security at any. Enquiry guidance notes 4
6 Submission route Regardless of whether you are associated with a mortgage club or distributor please select No. 7 Company details Complete the information related to the company. Please note we do not require the SIC code to be related to property. Enquiry guidance notes 5
8 Company income The company income page is not mandatory for this part of the application, you can leave it blank. However, you may be requested to submit this information during the underwrite. Enquiry guidance notes 6
9 BTL portfolio Please complete this section in full; we will also ask for full details of each property in the portfolio later on in the process. 10 Applicant summary You can at this stage add in additional parties with interest in the application. To include additional shareholders or directors please use the Add Associated Individual. i Please note we can accept up to 6 applicants and you must key every director and every shareholder who has a 25% or more stake. If the applicant company is owned by another company please key this information by clicking Add Applicant Company. If one or more of the additional applicants is a trading company please key them using the Add Associated Company. Enquiry guidance notes 7
11 Personal details We need all the personal details of each shareholder, please ensure at least one has the Primary Contact box ticked. Use the Add More button to include all directors and all shareholders with at least a 25% stake in the business. Enquiry guidance notes 8
12 Current address i Top Tip: If you are struggling to find the address using the look up tool you can enter XXX and hit Find Address to bring up a free form box. 13 Applicant employment Please select your client s employment status from the drop down, if the applicant is a director of a limited company whose sole activity is residential investment/land and property) please select employed. Remember proof of employment is a minimum submission guideline and at full mortgage application we will require: Employed applicants: We will require their latest payslip as long as it shows at least 3 months pay in the year to date figure, we ll also require their latest P60 or March year-end payslip. Self-employed applicants: We ll need 2 years HMRC self-assessment tax calculations (SA302) in conjunction with tax year overview information supplied by HMRC. For contract employment we ll also need the following: More than 6 months to run on current contract, evidence that they have been employed for a minimum of 12 months in the same line of work. Less than 6 months to run on current contract, evidence of 2 year track record of employment within the same line of work. Continued on next page... Enquiry guidance notes 9
Continued... 13 Applicant employment If the applicant is an individual landlord (i.e. not a director of a limited company) and has income from land and property in his/her name, select either self-employed sole trader or self-employed partnership and select Yes under other sources of income. From the drop down menu select Property and enter the income received. If the applicant is employed and has a secondary income from land and property, select Yes from Secondary Income, select Self-employed - Sole Trader or Self-employed - Partnership from the drop down menu. Under other sources of income select Yes, enter the rental income as it appears on the applicants SA302. If the applicant is a director of a limited company (where the sole activity of the limited company is residential investment/land and property), select employed, select Yes for more than 25% share owner, answer No to is this income derived through profit from land and property. Enquiry guidance notes 10
14 Individual financial commitments Personal Finance paid for by the company: We exclude loan or hire purchase if the company is paying regardless of whether it is in a personal name. Please key in the details and tick to be repaid. Remember you will need to add a note once the enquiry has been submitted via the add new note section. The note should explain what amounts are being repaid by the business and what the borrowing was for. BTL Mortgages You will need to include the total outstanding mortgage balance for properties owned, this should include 100% of the outstanding balance of mortgages owned in own name, with partial shares in mortgages totalled proportionality. For example: a 50% share in an outstanding mortgage balance of 100,000 should be recorded as 50,000. This figure should also include the increase following the completion of any new Aldermore Buy-to-Let mortgages. Enquiry guidance notes 11
15 Household expenditure Please tell us about any household expenditure and/or dependants that the applicant has. 16 Applicant summary This is your final chance to check the details of all applicants have been entered correctly. Remember to include all directors and all shareholders with at least a 25% stake. Enquiry guidance notes 12
17 Portfolio borrowing Your clients portfolio is needed here, in order to do this you will need to enter the aggregated loan details of all properties the applicant(s) have an interest in, this should include the new mortgage application(s) with Aldermore. You will need to complete all sections relevant to your applicant here for example they have 3 HMO s in a limited company name and 2 Residential single units. Please key all financials related to the HMO and Residential single units in the respective boxes. i Top Tip: Make sure you have a copy of the applicant s portfolio schedule to hand (download the Aldermore template here). Remember to include the total of all outstanding mortgage balances (single residential units, HMOs and multi-unit freeholds), remember multi-unit freeholds must b e keyed as single residential units. Note this figure should also include any increase to the outstanding mortgage balance following the completion of the new Aldermore Buy-to-Let mortgage and any current Buy-to-Let mortgage applications with Aldermore, if the applicant(s) have a partial share in a mortgaged Buy-to-Let property the full outstanding mortgage balance must be entered, the only exception to this is where joint applicants on the mortgage application are joint mortgage holders in other properties. Remember you will need to upload the Buy-to-Let portfolio schedule when the application is submitted. Enquiry guidance notes 13
18 Security details Please ensure Investment is selected under Use of Property and that the rent entered is always the annual figure. To be able to progress with the application we need a security s address, if your client hasn t yet settled on a property, please use the address of the potential security - remember to change this in the application to reflect the actual address of the security. i Top Tip: If you are struggling to find the address using the look up tool you can enter XXX and hit Find Address to bring up a free form box. For this type of application, please only select: Buy-to-Let single unit HMO (7 bedrooms or more) HMO (up to 6 bedrooms) Multi Freehold (5 or more units) Multi Freehold (up to 4 units) It is important for holiday lets you select one of the HMO options and not Guest House / B and B. Please note Ex-Local Authority flats have a minimum property value of 100,000 or 200,000 in Greater London. If you are unsure about the actual income for this security please use a realistic estimate, this must be entered as an annual amount. Enquiry guidance notes 14
19 Securities summary Use the Add Primary Security button to add additional securities. You can key a maximum of 16 separate properties on one enquiry via this portal. If you want to add any more please contact your telephone based Business Development Manager. Contact us 20 Loan details Loan purpose - please ensure you select either Capital Repayment or Interest Only, we do not accept Part and Part for this type of application. Please include the repayment strategy in the Exit Route box. Always enter the term in Months. Minimum term is 6 years (72 months). Source of Deposit: If keying a director s loan please input this as equity. Enquiry guidance notes 15
21 Product selection Your clients bespoke product selection will be displayed here, please select the product most suited to your client s circumstances. Remember all available products will be returned not just the lowest LTV. You may therefore need to check the reversion rates on our product guide before making a selection. Products with different maximum LTVs may have the same initial rate but different reversion rates, which after the initial deal period ends could impact your client s monthly repayment amount. Remember if the security is a holiday let you must select one of the HMO options. i Top Tip: If no products are returned, check the following: 1. The term entered is not less than 60 months. 2. The age of the applicant is incorrect. 3. The loan amount is either too low or too high for that product banding. Enquiry guidance notes 16
22 Fees page The fees for your client s application are displayed here, please select whether your client wishes to add them to the loan or settle them separately. This will need to be done using the yellow buttons. 23 Application declaration You will need to accept the application declaration to confirm that the information you have provided is correct and true. Enquiry guidance notes 17
24 Processing decision page The system will then process the enquiry and provide you with an immediate decision. 25 Decision result Here the decision result will be displayed along with the next steps. The outcome will always be: Accept Declined Referred If the case is referred one of our team will review the information provided manually. Please note this is not a full underwrite and this doesn t take place until the case is progressed to full mortgage application. If the case is declined you will be able to go back into the enquiry and amend rather than using the copy function or starting again. The only exception to this is if the decline is because of the credit bureau file. 26 Logging out page Enquiry guidance notes 18
We re here to help If you have any queries please contact us in one of the following ways: 0333 321 1000 Monday to Friday 9.00am 6.00pm* or email: mortgage.sales@aldermore.co.uk * Closed Bank Holidays. Calls may be recorded for training and monitoring purposes. aldermore.co.uk FOR INTERMEDIARY USE ONLY Aldermore Bank PLC. Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. (Financial Services Register number: 204503). Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough, PE2 6FZ. Registered in England. Company No. 947662. Telephone calls may be recorded or monitored for security and training purposes. ARM447-0918-500600