Stamp duty deadline leads Aldermore to change criteria

December 4, 2020 by Brendan O'Neill

Lenders

Mortgage lender Aldermore has announced that it is altering its guidelines for underwriting mortgage loans on a temporary basis to give buyers a better chance of completing purchases before the stamp duty deadline.

The changes that the lender has made to its loan criteria are intended to support those that opt for bridging finance so that they can complete property purchases before the stamp duty threshold returns to its normal level at the end of March.

From now until then, Aldermore will be accepting bridging loan refinancing for owner-occupied homes of under half a year. To be eligible under the revised criteria, a home has to have been owned for a minimum of one month and buyers will not be allowed to borrow for anything else, except fees.

Aldermore sent out a message to all of its advisors pointing out that there has been a massive spike in housing market activity over the past few months, with most of it being down to the raising of the threshold for stamp duty payments.

This message added that the spike was leading to delays, and that lenders could not promise that deals would be completed before the deadline. It concluded by telling advisors to be clear with clients about this possibility and suggest methods for making the process quicker – for example, supplying all necessary documents straight away and paying fees to their local authority immediately.

The CeMAP mortgage advisor qualification prepares advisors for pressured situations, like the one they will face for the next few months.