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Aldermore BTL overhaul extends allowable defaults, term length and maximum loans

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  • 06/02/2020
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Aldermore BTL overhaul extends allowable defaults, term length and maximum loans
Aldermore Bank has re-launched its buy-to-let (BTL) proposition which significant changes made to its criteria, rates and fee options.

 

The lender has launched new products to go along with the changes which it said would help it to serve more complex cases.

Key criteria alterations include extending the maximum loan term from 35 to 40 years and increasing loan limits to £1m for up to 75 per cent loan to value (LTV) and £500,000 for 80 per cent LTV.

It will now also ignore all defaults from communications firms and will accept small settled defaults from 13 to 36 months up to £500.

 

Fee and product changes

Fee changes include free valuation and assisted legal fees for single residential investment properties for remortgages.

A fee free five-year fix remortgage starting at 3.48 per cent for individual landlords with single residential investment properties has been added to the range.

And new products for portfolios of up to £5m have been unveiled, along with those for submitting multiple property portfolios on one application.

Aldermore has also reduced its HMO and multi-unit freehold products and released a simplified and reduced single valuation fee scale.

 

‘Welcomed by brokers’

Damian Thompson (pictured), group managing director – retail finance at Aldermore (pictured), said: “Landlords play a pivotal role in the UK housing market and, as the Private Rented Sector continues to expand, it is important they have options and flexibility, so they can continue to provide for tenants.

“We have listened to feedback from landlords and intermediaries, and this expansion of options gives us more opportunity to support landlords to find the mortgage that is right for them, whatever their circumstances.”

Simplybiz CEO Martin Reynolds noted that the ability to offer a longer term, higher loan sizes and loan purpose coupled with the new product flexibility will be welcomed by intermediaries.

 

 

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