Aldermore slashes limited company buy-to-let rates

Ryan Bembridge

January 7, 2016

Aldermore has slashed limited company buy-to-let rates by as much as 1%.

Products to 75% loan-to-value now include a 2-year fix at 4.18%, a 3-year fix at 4.78% and a 5-year fix at 4.98%. Variable term rates are also available from 3.93% to 75% LTV and 4.48% to 80% LTV.

The bank also reintroduced its buy-to-let 2-year fix at 4.68% to 80% LTV.

Buy-to-let landlords applying through limited companies will be able to avoid the government’s upcoming tax changes, as from 2017 to 2020 the amount of buy-to-let tax relief residential landlords can claim back will be cut from 45% to 20% for top rate taxpayers.

Charles Haresnape, Aldermore’s group managing director, mortgages, said: “With recent changes towards buy-to-let, Aldermore has looked to support those investing through limited companies by reducing rates in order to bring them in line with our product range for consumers.

“Feedback from our brokers shows an increase in the number of enquiries for buy-to-let products through limited companies. It is important that we are flexible to the investment patterns of our customers, and we have responded by levelling the playing field between our consumer and company buy-to let rates.

“With one in five properties in the UK owned by a private landlord, the private rental sector is a hugely important component of the housing market, and supporting buy-to-let landlords is crucial at a time when housing supply pressures have seen the number of number of households renting rise from 2.3 million in 2001 to 5.4 million in 2014.”

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