Aldermore revamps buy to let mortgage range
– Launch of new standard and specialist buy to let ranges;
– Brings residential and commercial buy to let mortgages under one proposition;
– Creation of new information hub for brokers;
– Survey shows 84% of brokers and landlords say buy to let lenders need to be more innovative.
– Aldermore has today revamped its entire range of buy to let mortgages, launching new standard and specialist products which offer simple through to complex cases for all types of brokers and landlords, including companies owning buy to let properties.
A key part of the revamp is bringing its residential and commercial buy to let ranges under one proposition. As a result, residential mortgage brokers and landlords will now have access to a wider variety of products, ranging from the standard range for individuals with single residential units, through to the specialist range, for limited companies, houses in multiple occupation (HMOs) and multi-freeholds.
Similarly, commercial mortgage brokers and landlords will now be able to access the standard range, which includes two, three and five-year fixed rates from 4.18%, while the maximum loan to value available is now 80%, up from 75% previously. These products were previously unavailable to commercial mortgage customers.
The specialist range allows residential mortgage brokers to access a new range of products for more complex buy to let cases. These include two, three and five-year fixed rates from 5.18% and variable rates from 4.93%.
A recent survey by the Bank found that 84% of intermediaries and landlords believe that lenders need to be more innovative to meet the varied needs of landlords. In the survey of 323 intermediaries, Aldermore found that 63% of the participants thought that landlords face too many restrictions from lenders.
Furthermore, 29% of those surveyed said that lenders appear reluctant to lend to landlords and 53% said lenders do not do enough to support the needs of the changing buy to let market.
In response to these findings, Aldermore has created a new buy to let hub for intermediaries, which will host information and expert commentary on the buy to let market. The hub will be a key source of information for brokers. It can be found here: www.aldermore.co.uk/btlhub
Other product enhancements introduced across the specialist buy to let range include:
– Increasing the maximum term from 20 years to 35 years;
– Increasing the mortgage term on interest-only up to 35 years from 10 years;
– Reducing early repayment charges; and
– Removing the fixed rate booking and commitment fee (previously £500 booking fee and 0.5% commitment fee).
Charles Haresnape, group managing director, Mortgages, Aldermore said: “The revamp we have introduced today across our entire buy to let mortgage range clearly demonstrates our commitment to the buy to let market and shows we will not sit still. Our new range covers the full and broad spectrum of buy to let, from the simple to complex, catering for all types of broker and landlord, including those companies that own buy to let property, which is a feature that may be more attractive to some borrowers post the recent Budget changes.
“These changes have been introduced in response to feedback from our broker and landlord customers. As a relatively new entrant to the banking sector, it is imperative that we listen to our customers’ needs and we are constantly looking at ways to innovate and evolve.”