Why we’re feeling confident and ready to grow

It’s been a tough 18 months for us all, but at Aldermore we’re feeling increasingly confident that the worst is behind us.

We’re excited about the future, both in terms of the return to normal life and the expected economic growth as we move out of the Covid-19 crisis.

Last year we focused on supporting our existing customers through a challenging time, and we continue to do so. But now it’s time to reinvigorate our product range, return to core parts of the mortgage market and grow our business.

Time to grow

We’re confident about growing and extending our mortgage proposition at this time for a range of reasons.

We believe we’re past the worst of the pandemic and now’s the time to start rebuilding and resuming our growth plan.

Economic indicators are looking more positive, with unemployment under 5%, fewer people reliant on furlough and the green shoots of economic recovery becoming apparent. UK GDP is estimated to have grown for five months in a row to June 2021, according to the Office for National Statistics.

The housing market surprised everyone last year, and it remains robust, despite the tapering of the stamp duty holiday. There’s still huge pent up demand as many people were able to save money during the lockdowns, and homeownership became even more of a priority.

We expect purchase demand to stay high, with prices supported by the lack of homes for sale and interest rates remaining low in the near future. And we’re predicting a rise in remortgage activity later this year.

At Aldermore we listen to brokers, as well as conducting research among existing borrowers and aspiring first-time buyers. We do this regularly to get an up-to-date insight into what both intermediaries and customers want.

For example, 72% of aspiring first-time buyers told us they thought buying a home was unachievable for them, and 43% have already been rejected for a mortgage. Our move back into 95% LTV mortgages combined with our specialist approach to lending has been designed to help these potential homebuyers to achieve their goals.

Likewise, the self-employed told us they feel they’re treated worse than salaried employees, with their earnings potential misunderstood (Source: Opinium commissioned by Aldermore). They don’t trust the lending community and 34% believe it will be harder to get a mortgage because of COVID.

As experts in lending to those who work for themselves, whose finances aren’t always straightforward, Aldermore meets the needs of the self-employed. And with our whole product range available to them, they can benefit from our reduced rates and more generous lending criteria.

Similarly, we conducted research with landlords (conducted by BDRC on behalf of Aldermore) to inform our buy-to-let lending strategy. Nearly four in 10 reported rising tenant demand in the second quarter of this year and 83% are making a profit on their investment, despite the global pandemic. This insight helped to inform the expansion of our buy-to-let product range, with higher LTVs and reduced rates.

As a result of our research with brokers, first-time buyers, the self-employed, renters and landlords, we’re confident that now is the right time to start growing our product range to meet borrower needs.

Confident, clear approach

It’s not just the wider economic and housing indicators that give us confidence, or our research with our key customer base.

At Aldermore we’ve worked hard during the pandemic to support existing clients and focus on our processes and policies. We’ve streamlined our application process to make it quicker and more consistent for brokers.

We’ve also strengthened our mortgage underwriting teams and bolstered other departments to make sure we’re well placed to support more mortgage customers.

Overall, we’ve spent the last year getting into great shape to re-ignite our business when the time is right. And that time is now.

Find out more

Visit our intermediary website to view our new product range to learn how we can help your clients.