Aldermore has introduced a new limited edition buy-to-let product aimed at private landlords, for loans up to £1m.
The new limited edition fixed rate is available for those applying for buy -to-let mortgages on single residential units. It is also being offered to those looking to remortgage a buy-to-let.
Under the terms it charges a 2.99 per cent interest rate fixed for five years at up to 70 per cent loan-to-value. There is a product fee of 1.50 per cent, and an application fee of £199.
Last week Aldermore announced it would reduce its help-to-buy mortgage rates by more than one per cent, increasing support for first time buyers.
The lender also revealed it would be replacing its existing two-year fixed rate product with a standard, non-tiered offer.
Charles Haresnape, Aldermore’s Group managing director of mortgages, said: “With the average monthly rent for a home in England and Wales rising to an all-time high in July, the buy-to-let sector continues to offer a strong investment opportunity, and is an increasingly important segment of the housing market.
“Our new fixed rate, which is available for both purchase and remortgage, is great for landlords looking to guarantee their mortgage repayments in the long term, allowing them to better plan their investments.”
David Conway, a mortgage adviser at Clayhall FS said: “It’s a very competitive product, and would be a 0.19 per cent reduction on their current equivalent rate.
“This is a very aggressive step for a lender who have, as a result of a very flexible approach to lending typically they set their rates slightly above the mainstream – this however will be at the market leading edge of 5 year fixed rates (and pretty close to the leading 3 year fixed rates).
“Professional and amateur landlords alike who are worried about the impact on their incomes and cash flow by changing income tax regulations and stamp duty will welcome this long term certainty at low rates with open arms I’m sure.
“Even the fee isn’t off putting – the Aldermore fee of 1.5 per cent remains no more expensive if borrowing £300k for example and paying £4500k to take a 5 year fixed rate than it would be paying £2k flat fee for each time they remortgage a two year fixed.”