Aldermore slashes buy-to-let rates

Aldermore slashes buy-to-let rates

Aldermore has slashed rates on its buy-to-let mortgage range.

It has introduced reduced rates for company landlords, which are now aligned to Aldermore’s buy-to-let range for individuals.

The lender has also launched reduced rates for multi-unit freehold and houses in multiple occupation, from 4.38 per cent. This is on a two-year fixed rate purchase and remortgage up to 75 per cent loan-to-value (LTV).

The bank also said it intends to reduce its early repayment charges and will offer new remortgage products with no product, valuation or legal fees.

Charles McDowell, commercial director for mortgages at Aldermore, said: "The buy-to-let sector plays an important role in the housing market so we are delighted to announce these latest changes, which provide further support to landlords.

"The sector has experienced significant change recently, so we regularly review our products to ensure we continue to support a broad range of customers, no matter how big or small their portfolio is."

As part of the changes, which will be available from Monday (April 23),  Aldermore has also reduced term variable rates across the range, with rates from 3.28 percent.

Other changes also include new remortgage-only products with no product, valuation or legal fees.

Its new multi-property product offers discounted rates for those with an existing Aldermore mortgage, or new customers submitting a second or subsequent purchase and remortgage application. There are also reduced early repayment charges.

In addition, Aldermore now considers one year's accounting information, which is aimed at self-employed landlords who have only been trading for a short period of time.

Mr McDowell said the bank is launching a fully responsive broker portal, which will be accessible from smart phones or tablets, to allow brokers to complete an illustration and get a quote or submit a decision in principle for their client quickly. 

Alan Lakey, partner at Highclere Financial, said: "It is good to see a lender not forgetting this group of niche borrowers. Many lenders either ignore or impose difficult terms on these potential borrowers. The rates are less appealing than for individual applicants, but you can’t have everything.

"Aldermore is a lender which has given great consideration to those areas where other lenders fear to tread or offer unappealing terms or criteria and as such it is likely to find its customer base growing whilst others stutter."