Aldermore and Foundation shake-up buy-to-let rates

Aldermore is to cut rates for company landlords, aligning the deals with the lender’s buy-to-let range for private individuals, from 23 April.

The lender is also reducing its early repayment charges and offering new remortgage deals with no product, valuation or legal fees.

As part of the changes, rates for multi-unit freehold and houses in multiple occupation (HMO) are to start from 4.38% for a two-year fixed-rate purchase and remortgage up to 75% loan to value (LTV).

The lender is also now considering one year’s accounting information to suit self-employed landlords who have only been trading for a short period of time.

Charles McDowell, Aldermore’s mortgages commercial director (pictured), said: “The buy-to-let sector plays an important role in the housing market so we are delighted to announce these latest changes, which provide further support to landlords.

“The sector has experienced significant change recently, so we regularly review our products to ensure we continue to support a broad range of customers, no matter how big or small their portfolio is.

“We also aim to ensure we provide the highest level of service to our brokers, so we are launching a fully responsive broker portal, accessible from smart phones or tablets.”

From April 23, the new portal will enable brokers to complete an illustration and help get a quote or submit a decision in principle for their client using any device.

Foundation

At the same time, Foundation Home Loans has launched a standard plus five-year fixed-rate deal across its buy-to-let range, available for a limited time.

The deal has a fixed-rate of 3.54% at 75% LTV and a 2% arrangement fee and an interest cover ratio (ICR) of 145% times pay rate for individuals and 125% times pay rate for limited companies.

Portfolio and non-portfolio landlords without any adverse credit within the last six years can apply for the product.

Andrew Ferguson, commercial director at Foundation Home Loans, said: “We are committed to providing competitive products and service to intermediaries, designed to offer them far more choice and ease the process of working with their landlord clients.

“With the rental assessment based on the pay rate, we are sure these new products will appeal to many portfolio and non-portfolio landlords.”