Residential mortgage brokers and landlords now have access to a wider variety of products, ranging from the standard range for individuals with single residential units, through to the specialist range, for limited companies, houses in multiple occupation (HMOs) and multi-freeholds.
Similarly, commercial mortgage brokers and landlords are now be able to access the standard range, which includes 2, 3 and 5-year fixed rates from 4.18%, while the maximum LTV available is now 80%, up from 75% previously. These products were previously unavailable to commercial mortgage customers.
The specialist range allows residential mortgage brokers to access a new range of products for more complex buy-to-let cases. These include 2, 3 and 5-year fixed rates from 5.18% and variable rates from 4.93%.
A recent survey by the Bank found that 84% of intermediaries and landlords believe that lenders need to be more innovative to meet the varied needs of landlords. In the survey of 323 intermediaries, Aldermore found that 63% of the participants thought that landlords face too many restrictions from lenders.
Some 29% of those surveyed said that lenders appear reluctant to lend to landlords and 53% said lenders do not do enough to support the needs of the changing buy-to-let market.
As a result Aldermore has created a buy-to-let hub for intermediaries which will host information and expert commentary on the buy-to-let market.
Other product enhancements introduced across the specialist buy-to-let range include:
• Increasing the maximum term from 20 years to 35 years;
• Increasing the mortgage term on interest-only up to 35 years from 10 years;
• Reducing early repayment charges; and
• Removing the fixed rate booking and commitment fee (previously £500 booking fee and 0.5% commitment fee).
Charles Haresnape, group managing director, mortgages, Aldermore, said: “The revamp we have introduced today across our entire buy to let mortgage range clearly demonstrates our commitment to the buy to let market and shows we will not sit still.
“Our new range covers the full and broad spectrum of buy to let, from the simple to complex, catering for all types of broker and landlord, including those companies that own buy-to-let property, which is a feature that may be more attractive to some borrowers post the recent Budget changes.
“These changes have been introduced in response to feedback from our broker and landlord customers. As a relatively new entrant to the banking sector, it is imperative that we listen to our customers’ needs and we are constantly looking at ways to innovate and evolve.”
To complement the launch of its revamped buy-to-let range the Bank has introduced new LTV tiers at 50% and 60% as well as maintaining its 75% tiers on its commercial range. Pricing has reduced across a number of LTV tiers and variable rates now start at 4.99% (previously 5.20%), while new five-year fixed rates have been added to the range, starting at 6.39%.
Fees have been reduced, including the removal of the fixed rate booking fee of £500 and fixed rate arrangement fees have been cut from 2.50% to 1.75%. Arrangement fees can now also be added to the loan.
Haresnape added: “We have relaunched our entire commercial mortgage range today and added various improvements in order to widen choice for our customers, offering more products and flexible criteria.
“We are always looking at ways to improve our products and services and many of these changes have been made in response to feedback from our commercial mortgage brokers and customers. Commercial mortgages is a growing area of Aldermore’s business and we are keen to support the growth of this sector by offering a more extensive range.”