Aldermore removes barriers to remortgaging

Nia Williams

March 21, 2011

The new deals have the following features:

• No completion fees

• No valuation fees

• No legal fees

• Residential borrowers have a choice of a three year fix at 5.83% or a term variable rate of 5.33%

• Buy-to-let borrowers have the option of a 5.88% term variable rate.

Aldermore has also reduced the rate on its two year fix to just 4.98% for both remortgages and purchases up to 80% LTV, with a completion fee of £1,999.

Commenting, Charles Haresnape, managing director of residential mortgages at Aldermore, said “The remortgage market has traditionally formed the bedrock of mortgage brokers’ business, but over the past couple of years it’s been desperately in need of a kick-start.

“Aldermore has done just that by launching fixed and variable rate remortgage deals with no completion fees, no valuation fees and no legal fees. We’ve removed all barriers to remortgaging and hope this gives brokers that much-needed new business boost they’ve been waiting for.

“What’s more, we’ve also reduced our popular two year fix to just 4.98% for purchases and remortgages up to 80% LTV.”

The UK remortgage market has collapsed from a high point of £12.6bn in October 2007 to £2.7bn today, which equates to just 28% of gross mortgage lending by value.

However, Connells has recently reported that remortgage valuations have increased by 52% month on month in February and by 107% over the past year, indicating that the sector may be on the brink of an upturn in fortunes.

Aldermore’s mortgages are available exclusively through intermediaries and decision-making is not dependent on credit scoring but is based on sensible underwriting rules and criteria applied by experienced people.

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