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Latest updates

We provide mortgages to creditworthy borrowers denied access to high street products. Our latest product updates relating to residential mortgages are listed below.

See below details of Aldermore’s recent product and industry updates.

New 2 year fixed buy-to-let rates for Limited Companies - 14 February

We've introduced new specialist 2 year fixed rate products for Limited Company buy-to-lets on single residential units. There's now a range of fee options, including selected mortgages with no application or product fee. We've also reduced our existing specialist rates.

New specialist buy-to-let 2 year fixed rates:

  • 4.48% to 75% LTV (product fee £1,999)
  • 4.98% to 75% LTV (no product fee)
  • 4.98% to 80% LTV (product fee £1,999)
  • 5.48% to 80% LTV (no product fee)

 

Reduced specialist buy-to-let 2 year fixed rates:

  • 4.18% to 75% LTV - now 3.98% (product fee 2%)
  • 4.68% to 80% LTV - now 4.48% (product fee 2%)

 

In addition, all our existing 2 year fixed standard buy-to-let rates have been reduced by 0.1% - now from 3.38% up to 75% LTV.

For full details please see our updated product guide which has all the information you'll need.

New 2 year fixed buy-to-let rates for individual landlords - 19 January

We've dropped our 2 year fixed rates for private individuals on buy-to-let mortgages and remortgages. Plus there are now selected mortgages available with no product fee.*

Replaced 2 year fixed rates:

  • 4.18% to 75% LTV - now 3.48% (product fee 2.5%)
  • 4.68% to 75% LTV - now 3.98% (product fee £1,999)
  • 4.68% to 80% LTV - now 3.88% (product fee 2.5%)
  • 5.18% to 80% LTV - now 4.38% (product fee £1,999)


New 2 year fixed rates:

  • 4.48% to 75% LTV (no product fee, *application fee £199)
  • 4.88% to 80% LTV (no product fee, *application fee £199)


For full details please see our updated product guide which has all the information you'll need.

Buy-to-let Affordability Calculator Launched – 4 January

On 4 January we launched our new BTL Affordability Calculator, making it easy for you to find out how much your client’s could borrow and what their monthly repayment amount will be.

Our new affordability calculator is suitable for both private individuals and limited companies, regardless of whether they’re looking to invest in standard residential properties or HMOs and what’s more our new affordability calculator allows you to include your client’s personal income in the calculation if they wish.

To use our new calculator you’ll need to work out the stress rate using the calculations below, to check our latest product rates click here.

  • Term Variable products or Fixed Rate products under 5 years please use the higher of 1) pay rate +2% or 2) 5.5%
  • Fixed Rate products over 5 years please use the higher of 1) pay rate or 2) 5.5%

 

Click here to give it a go.

Residential Range Refresh and New High LTV Range – 3 January

We’ve refreshed our owner occupied mortgage products for 2017, with many rate reductions and a range of mortgages for clients with low deposits too. Our new High LTV range up to 95% LTV offers new products to replace the Help to Buy: mortgage guarantee scheme and also offers remortgages up to 85% LTV.

We’ve also reduced our Early Repayment Charges and allow overpayments of up to 10% a year on all our new owner occupied products.

Please see our residential mortgages literature and downloads page for all the info you’ll need including an updated product guide and lending criteria.

Limited Edition Buy-to-Let Range Withdrawal – 12 December

On 12 December at 7pm our Limited Edition buy-to-let range, for individual landlords on single residential units, will be withdrawn.

This affects the following rates:

  • 3.99% 5 Year Fixed Rate up to 80% LTV
  • 3.93% 5 Year Fixed Rate up to 80% LTV for loans over £250,000 
  • 3.93% 3 Year Fixed Rate up to 80% LTV for loans over £250,000
  • 3.93% 2 Year Fixed Rate up to 80% LTV for loans over £250,000
  • 3.68% Term Variable Rate up to 75% LTV with no product fee, for loans over £250,000

Help to Buy: mortgage guarantee scheme closes soon – 1 December

We’re part of the Government’s Help to Buy: mortgage guarantee scheme which will end this year (2016). Here are the deadlines for Help to Buy: mortgage guarantee cases with us:

  • Friday 30 December 2016 by 11:59pm – all existing DIPs must be taken to a status of 'Full Application Submitted' in the Residential Mortgages Broker Portal, and valuation fees paid by this time
  • Friday 30 June 2017 – all cases must complete by this date

 

If you have any questions please contact your BDM or call us on 0333 321 1000.

Autumn Offer Product Withdrawals - 1 November

On Monday 31 October 2016, two of our Autumn Offer products were withdrawn:

  • 5 Year Fixed Rate Mortgage at 3.25% up to 75% LTV (loans £25,000 up to £600,000)
  • 5 Year Fixed Rate Mortgage at 3.93% up to 80% LTV (loans £25,000 up to £400,000)

Refreshed Autumn Offer on Limited Edition Buy-to-Let mortgages - 24 October

The leaves are still falling and we’ve refreshed our Autumn Offer. You can see our latest 5 year fixed rate Limited Edition products for private individuals below. And our Term Variable rate at 3.68% is still available, as a Limited Edition mortgage, with no product fee (normally 3%).

Limited Edition 5 Year Fixed Buy-to-Let mortgages:

  • 3.18% up to 70% LTV (loans £25,000 up to £1m)
  • 3.25% up to 75% LTV (loans £25,000 up to £600,000)
  • 3.93% up to 80% LTV (loans £25,000 up to £400,000)

 

Limited Edition Term Variable Buy-to-Let mortgage:

  • 3.68% up to 75% LTV with no product fee (loans £250,000 up to £1m)

Please note these products are available for a limited time only.

Updated Autumn Offer on our Limited Edition Standard Buy-to-Let range - 18 October

As the leaves fall off the trees, our rates are dropping too! We’ve reduced our 5 year fixed rate Limited Edition products for private individuals and our lowest Term Variable rate is now available as a Limited Edition mortgage with no product fee (normally 3%).

Limited Edition 5 Year Fixed Buy-to-Let mortgages:

  • 2.79% up to 70% LTV (loans £25,000 up to £1m)
  • 2.99% up to 75% LTV (loans £25,000 up to £600,000)
  • 3.93% up to 80% LTV (loans £25,000 up to £400,000)

 

NEW Limited Edition Term Variable Buy-to-Let mortgage:

  • 3.68% up to 75% LTV with no product fee (loans £250,000 up to £1m)

Please note these products are available for a limited time only.

Changes to our Specialist Buy-to-Let range – 26 September

With effect from 9am on 26 September 2016 the following Specialist Buy-to-Let Limited Edition products, for Limited Companies, were withdrawn and are no longer available:

  • 2 year fixed rate, 3.93% up to 80% LTV (loans £250,000 up to £1m)
  • 3 year fixed rate, 3.93% up to 80% LTV (loans £250,000 up to £1m)
  • 5 year fixed rate, 3.93% up to 80% LTV (loans £250,000 up to £1m)
  • 5 year fixed rate, 3.99% up to 80% LTV (loans £25,000 up to £1m)

New Limited Edition 2 Year Fixed Rate Products with Free Valuations – 21 September

Our Limited Edition 2 Year Fixed Rates up to 80% LTV now come with a free valuation.

We’ve also dropped our 2 Year Fixed Rate up to 70% loan to value, so our range of Limited Edition 2 Year Fixed Mortgages now looks like this:

  • 3.28% to 70% LTV with a free valuation
  • 3.38% to 75% LTV with a free valuation
  • 3.68% to 80% LTV with a free valuation

 

These mortgages are available to first time buyers, home-movers, and remortgagers on loans from £25,000 up to £1m, for a limited time only.

Our lowest ever buy-to-let mortgage rate - 13 September

We’ve launched a new Limited Edition 5 year fixed buy-to-let mortgage, for private individuals, on loans from £25,000:

  • 2.99% to 70% LTV (loans up to £1m)

 

 This product will be available for a limited time only and may be withdrawn at any time.

New Help to Buy: mortgage guarantee 2 Year Fixed Rate – 8 September

We’ve withdrawn two of our 2 Year Fixed Rate Help to Buy: mortgage guarantee products (5.99% to 90% LTV and 6.09% to 95% LTV) and replaced them with a new lower rate:

  • 4.98% to 95% LTV


This 2 year Fixed Rate is available to first time buyers and home-movers with a low deposit, for loans between £25,000 and £400,000.

Updated Limited Edition Buy-to-let Mortgage Range - 18 August

We’ve updated our range of 5 year fixed buy-to-let mortgages, for private individuals, on loans from £25,000:

  • 3.18% to 70% LTV (loans up to £1m)
  • 3.25% to 75% LTV (loans up to £600,000)

 

These products will be available for a limited time only and may be withdrawn at any time.

Buy-to-let Summer Special Offer - 14 June

We've launched a special offer for buy-to-let private individuals with a 5 year fixed rate mortgage at 3.25% for a limited period.

Summer Special Offer:

5 year fixed rate (purchase and remortgage)

3.25% to 80% LTV

* This limited time buy-to-let special offer will be withdrawn with effect from 8:00am on 14 July *

Product Update – Thursday 21st April

We are pleased to announce we've reduced a number of our 2 year fixed rates by up to 0.30%. The new rates are available with immediate effect to new business applications. 

What are we launching?

2 year fixed rate (Purchase and Remortgage)

• 3.38% to 75% LTV (£999 completion fee)
 3.68% to 80% LTV (£999 completion fee) 

These new product options make it even easier for you to source your clients a compelling and competitive rate.

New Broker Portal and MCD now live – Thursday 17 March

Today we've launched our new Residential Mortgages broker portal and implemented the changes required for the European Mortgage Credit Directive (MCD). Here is all you need to know about:

• Our new broker portal
• Changes we've made for MCD
• Pipeline arrangements for existing customer cases on our 'previous' portal

New Residential Mortgages broker portal

Our new portal is still quick and simple to use and provides additional functionality, which will enable us to bring you and your clients future product and service enhancements.

What have we changed?

We've listened to your feedback and introduced a new look and feel, improved customer journey and some additional data fields. View our handy guide which details how to get started and some of the key changes for regular users of the portal.

View the key changes

Lending Policy Update – Thursday 17 March

We are making some changes to our Residential and Buy-to-let lending criteria with immediate effect:

What are we changing?

The key updates include:


Minimum Valuation

Reduced from £75,000 to £60,000

Credit status
We've aligned the following credit status criteria across all LTVs.

Mortgage or secured loan arrears
None in the last 3 months
No more than 1 month's arrears in the last 12 months
No more than 2 months' arrears in the last 24 months (arrears over 24 months ago considered)

Unsecured loan arrears
None in the last 3 months
No more than 2 months' arrears in the last 24 months (arrears over 24 months ago considered)

County Court Judgements (CCJ) / Sheriff Court Decrees
None registered in the last 3 years
CCJs registered more than 3 years ago but only satisfied in the last 3 years accepted, if total balance does not exceed £500 (CCJs satisfied over 3 years ago considered)

Affordability
We've made some revisions to our residential owner-occupied affordability calculator.

Mortgage Credit Directive (MCD)
We've also implemented the changes required for MCD.

For full details on our approach including Consumer Buy-to-let, and foreign currency loans please refer to our handy MCD guide
.

System Update - Portal Availability and Pipeline Cases - Friday 11th March 2016

We're currently preparing for the implementation of the Mortgage Credit Directive (MCD) and working on some improvements to our Residential Mortgages broker portal.

Broker Portal Unavailable
As a result of the systems updates the Residential Mortgages Broker Portal will be unavailable during the following periods:

• 5pm on Wednesday 16th March until 9am on Thursday 17th March

Pipeline Arrangements
We'll also be adopting the approach below for existing pipeline:

• Dips and applications - to be progressed to a status of 'Valuation Instructed' by 5pm on Wednesday 16th March, if your client will be progressing with their application.

• Dips and applications - that have not progressed to 'Valuation Instructed' by 5pm on Wednesday 16th March will need to be re-submitted when the portal re-opens at 9am on Thursday 17th March.

• Applications at Valuation Instructed (or beyond) - no action is required

Login to the Residential Mortgages Broker Portal to submit or progress an application.

Product Update – Wednesday 3rd February 2016

We are pleased to announce we've reduced our 5 year fixed rates by up to 1.29% for single residential units.

Our new limited edition rate is the same whether your landlord clients operate as a limited company or on an individual basis and is ideal for customers looking to guarantee their mortgage repayments for the long-term.

5 year fixed rate (Purchase and Remortgage)

Standard Range (Individuals with single residential units)

• 3.99% to 80% LTV (2.50% completion fee) 

Specialist Range (Limited companies with single residential units)
• 3.99% to 80% LTV (2.50% completion fee)

Mortgage Credit Directive Update – Monday 21st December

We're underway with our preparations for the implementation of the European Mortgage Credit Directive (MCD) in readiness for the deadline of 21st March 2016 and wanted to provide you with an update on our approach and what it means for you and your clients.

Our approach

Our new MCD leaflet provides full details on our approach to the following key areas of the new conduct rules:

  • Consumer Buy-to-let
  • ESIS or KFI+
  • Foreign currency loans
  • Binding offers and 7 day reflection period


Pipeline arrangements

From 4th January we will be reducing the period for which accepted Decision in Principles (DIPs) are valid to 14 days. We hope this will have a minimal effect on your business with us as our research indicates the vast majority of DIPS currently convert to full application within this time frame. 

Any DIPS progressed to the status of DIP KFI Produced before 4th January will continue to be valid for 30 days. 

This forms part of our preparation for the implementation of MCD and further updates on pipeline arrangements will be provided in early 2016. 

Implementation timeline 

We'll be implementing MCD in March 2016 in advance of the regulatory deadline and will share further updates with you early next year. 

Product Updates – Tuesday 29th September

We are pleased to announce that with effect from 9am Tuesday 29th September we are reducing a number of our Residential and Buy-to-let product rates by up to 0.50%.

Residential

NEW Limited edition 2 year fixed rates

  • 3.48% to 75% LTV (£999 completion fee)
  • 3.98% to 80% LTV (£999 completion fee)


Buy-to-let


NEW Limited edition 2 year fixed rates

  • Standard Range (Individuals with single residential units)
  • 3.98% to 75% LTV (2.50% completion fee)
  • 4.28% to 80% LTV (2.50% completion fee)
  • Specialist Range (Limited companies with single residential units)
  • 4.98% to 75% LTV (2.50% completion fee)
  • 5.28% to 80% LTV (2.50% completion fee)
  • Specialist Range (Multi freehold units and HMOs)
  • 5.28% to 75% LTV (2.50% completion fee)


REDUCED
Remortgage only (No valuation, legal or completion fees) 3 year fixed rates

  • Standard Range (Individuals with single residential units)
  • 4.98% to 75% LTV
  • 5.28% to 80% LTV


These new product options make it even easier for you to source your clients a compelling and competitive rate.

Lending Policy Update – Wednesday 9th September 2015

Residential and Buy-to-let changes include:

  • Let-to-buy - Applications for the onward purchase of a new residential owner-occupied property now considered, where the existing property is to be let and considered self-supporting (subject to maximum 80% LTV)

  • Family gifted deposits - Accepted from aunt/uncle, foster parent or legal guardian

  • Accountants qualifications - Chartered Institute of Taxation (CIOT) now included

  • Pay day loans - Applicants can be considered where the loan was in place over 6 months ago

Buy-to-let product updates – Wednesday 22nd July 2015

New Specialist Buy-to-Let range (Limited companies, HMOs and Multi freeholds)

  • We've combined and enhanced our Residential and Commercial Buy-to-let ranges, which provides solutions for all types of landlords. You can now access our Specialist Buy-to-let range, designed for your landlord clients who are limited companies or have HMOs and multi freehold units. We've made it easier for you to access the full spectrum of Buy-to-let products for simple to complex deals.


Standard Buy-to-Let range 

  • New reduced 5 year fixed rates: 4.98% to 75% LTV, 5.28% to 80% LTV (2.50% fee)


> Find out more about the product launch

Summer Budget 2015 – Information for Individual Landlords

Please find below details of the changes to tax relief for individual landlords, which was announced as part of the 2015 Summer Budget.

Landlords

1.190 The current tax system supports landlords over and above ordinary homeowners. Landlords can deduct costs they incur when calculating the tax they pay on their rental income. A large portion of those costs are interest payments on the mortgage. Mortgage Interest Relief was withdrawn from homeowners 15 years ago. However, landlords still receive the relief. The ability to deduct these costs puts investing in a rental property at an advantage. Tax relief for finance costs is particularly beneficial for wealthier landlords with larger incomes, as every £1 of finance cost they incur allows them to pay 40p or 45p less tax. The Bank of England has also noted in its recent Financial Stability Report that the rapid growth of buy to let mortgages could pose a risk to the UK’s financial stability.

1.191 The government will restrict the relief on finance costs that landlords of residential property can get to the basic rate of income tax. The restriction will be phased in over 4 years, starting from April 2017. This will reduce the distorting effect the tax treatment of property has on investment and mean individual landlords are not treated differently based on the rate of income tax that they pay. It will also shift the balance between landlords and homeowners.

1.192 The government will also reform how landlords of residential property can account for the costs they incur in improving and maintaining rental property. Currently, landlords of furnished properties can deduct 10% of their rent from their profit to account for wear and tear, irrespective of their expenditure. This means landlords can reduce their tax liability even when they have not improved the property. From April 2016, the government will replace this allowance with a new system that enables all landlords of residential property to only deduct costs they actually incur.

1.193 The government will increase the Rent-a-Room relief from £4,250 to £7,500 a year from April 2016. The value of this relief has been frozen since 1997, so this increase will allow individuals who rent a room in their main residence to do so tax free on income up to £7,500 to reflect increases in rent.

(Source: HM Treasury – Summer Budget 2015)

Please click here for further information released by HM Treasury

 

Lending criteria update - Friday 17th April

Buy to let Range

  • Maximum number of Buy to Let properties increased from 5 to 10 (plus 1 residential property), subject to a maximum total exposure of £2m with Aldermore Residential Mortgages

Product updates - Tuesday 17th February

Buy to let Range

  • New term variable products (limited edition) starting from 3.93% - with pay rate rental calculation
  • New 2 year fixed from 4.48%
  • New 3 year fixed (£199 booking fee) remortgage only from 5.28%


Help to Buy Range

  • New 3 & 5 Year fixed rates from 5.99%


Residential Range

  • New 3 year fixed (£199 booking fee) remortgage only from 4.58%


Lending Criteria Change

  • Time period for remortgage (from original purchase date) reduced from 9 to 6 months

Product updates - Tuesday 7th October

Buy to Let Range:

  • Term variable rates reduced, now from 4.48% - with pay rate rental calculation

 

Help To Buy Range:

  • Revised fixed rates from 5.99%

 

Lending Criteria Change:

  • Remortgage option withdrawn for Help to Buy: mortgage guarantee

 

Product updates - Monday 28th July

Residential Range:

  • Revised fixed rates from 3.98%
  • New remortgage only 5 year fixed rates from 5.08%

 

Buy to Let Range:

  • Revised fixed and variable rates from 4.48%
  • New remortgage only 5 year fixed rates from 5.68%

 

Lending Policy Change:

In response to the recent announcement by the Bank of England’s Financial Policy Committee, Aldermore will be implementing the following changes to our Residential Owner Occupier lending policy:

  • Loan to Income Limit
  • Above 85% Loan to Value (LTV) (including Help to Buy: mortgage guarantee) – must be less than 4.5 times income
  • Up to 85% LTV - must be less than 5 times income

 

The loan to income limit applies to all new business submitted from Monday 28th July(Buy to Let products are not impacted by this change).

Aldermore’s primary assessment is carried out on an affordability basis. The introduction of loan to income limits will continue to ensure that our borrowers do not over extend themselves when entering into a mortgage with us.

 

Help to Buy product updates - Monday 7th July

  • 2 year fixed: 5.68% to 95% LTV
  • 3 year fixed: 5.78% to 95% LTV
  • 5 year fixed: 5.88% to 95% LTV
  • Remortgage only 3 year fixed rate: 5.88% to 95% LTV

 

With Aldermore you benefit from:

  • Applications assessed using individual case underwriting and not credit scoring
  • Consideration for CCJs and Defaults older than 3 years
  • No valuation, legal or completion fees on Remortgage only products.

 

Product updates - Monday 16th June

Reduced 2 year fixed rates:

  • 3.78 % to 70% LTV, 3.98% to 80% LTV and 4.73% to 85% LTV

 

Revised Help to Buy Mortgage Guarantee rates:

  • 2 year fixed: 5.28% to 90% LTV and 5.58% to 95% LTV
  • 3 year fixed: 5.68% to 95% LTV
  • 5 year fixed: 5.78% to 95% LTV

 

Remortgage only

  • Product booking fee revised to £199

 

Product updates - Friday 23rd May

Buy To Let

  • Revised fixed and variable rates introduced at 75% LTV
  • Remortgage only product booking fee revised to £199

 

Don’t forget with Aldermore there is:

  • No set minimum income required for experienced landlords
  • No overall portfolio restrictions
  • A maximum age of 85 at the end of the mortgage term

 

Product updates - Wednesday 19th February

Residential

  • Help to Buy: mortgage guarantee range extended to include new 2, 3 & 5 year fixed rates up to 95% LTV
  • Standard range extended to include new fixed & variable rates up to 85% LTV
  • Remortgage only product booking fee revised to £149
  • Family Guarantee 3 year fixed rate revised up to 100% LTV
  • 65% LTV product tier increased to 70%

 

Buy to Let

  • Revised fixed and variable rates introduced
  • Remortgage only product booking fee revised to £149
  • 65% LTV product tier increased to 70% for loans up to £1million

 

At Aldermore we want to help you write more business and continue to offer:

  • No restrictive credit scoring
  • 5 star customer service
  • Individual case underwriting

 

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