Aldermore revamps BTL products

by: Heather Greig-Smith
  • 30/09/2016
  • 0
Aldermore revamps BTL products
Aldermore has relaunched its range of buy-to-let mortgages.

The new range is for private landlords seeking loans up to £1m. It includes a five-year fix for individuals buying single residential units and a variable rate offer with no product fee.

The five-year fix costs 2.79% up to 70% loan-to-value (LTV), 2.99% up to 75% LTV and 3.25% up to 80%. It comes with an application fee of £299 and product fee of 1.5%.

The variable rate product is 3.68% up to 75% LTV for loans between £250,000 and £1m and comes with a £199 application fee.

Charles Haresnape, Aldermore’s group managing director for mortgages, said: “The change in the base rate has led to the average five-year fixed rate for a 75% loan-to-value buy-to-let mortgage falling below 4% for the first time, and now is a great time for landlords to remortgage some or all of their portfolios.”

He pointed to rising rents as a positive indicator. “Buy-to-let as an investment continues to be underpinned by strong fundamentals, with tenants who signed up to a new tenancy during the month of August agreeing to an average rental increase of 3.1% year on year.”

The new products follow the company’s August buy to let rate refresh when it said it had seen a dramatic increase in the sector though residential lending had fallen 14% year on year for the first half of 2016. It attributed the rise in buy to let to applications made at the end of 2015 as the market rushed to avoid the 3% stamp duty premium that came in on 1 April this year.

 

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