The rate is available for individuals applying for buy-to-let loans worth up to £1m on single residential units and will have an initial rate of 3.25% fixed for five years, available up to 80% loan-to-value.
Aldermore’s group managing director of mortgages, Charles Haresnape said demand in the buy-to-let market remained strong.
“Our new rates help keep costs down for clients at a time when demand for housing continues to outstrip supply,” he said.
“According to the latest survey from RICS [Royal Institute of Chartered Surveyors], tenant demand continues to rise across all areas with a net balance of 23% of contributors reporting an increase at the national level, and buy to let remains a strong investment choice despite recent changes to Stamp Duty charges.”
The new product is available on both purchases and remortgages and comes with a completion fee of 1.5% and a booking fee of £199.