Aldermore has launched its lowest-ever remortgage-only deal as part of a range of limited edition products aimed at helping people switch to a lower rate.
The two-year fixed rate mortgage is available at 2.48 per cent up to 75 per cent loan-to-value (LTV), has no up-front fees and comes with a completion fee of £30.
The other products in the range are a 2.78 per cent two-year fix at 75 per cent LTV, and three-year fixes at 2.58 per cent up to 75 per cent LTV and 2.88 per cent up to 80 per cent LTV.
Aldermore said the products are ideal for people who are stuck on their current lender’s standard variable rate (SVR) and would benefit from Aldermore’s manual approach to underwriting.
It comes shortly after a report by the Citizens Advice Bureau showed people who remain on their lender’s SVR face an average £1,000-a-year ‘loyalty penalty’.
Aldermore has also tweaked its high-LTV rates to help those with a small deposit get onto or move up the property ladder.
Charles McDowell, commercial director, mortgages, at Aldermore, said: “As people’s circumstances change, for example if they have become self-employed or have split from a partner, their affordability may be impacted which means they may not be able to switch to another deal with their current lender.
“There are millions of borrowers across the UK on SVR who could be getting better deals. Now is the time for advisors to get in front of those borrowers.”
Rob Jupp, chief executive at Essex-based Brightstar, commented: "The remortgage market has threatened to be reignited for many years but has understandably remained largely stagnant due to almost a decade of no interest rate rises.
“Many clients continue to sleepwalk paying unnecessarily high SVR based mortgages and products like the one Aldermore have launched today will make a positive contribution to helping to wake these customers up. That said, sadly, only a rise in base rates will really get this space moving.”
simon.allin@ft.com
