Aldermore has today announced a number of changes to its 5 year fixed rate Buy-to-Let mortgages. It has reviewed its position on affordability on Buy-to-Let 5 year fixed rates to improve the competitiveness of its offering.
The specialist Bank has made the following changes:
- Reduced reversion rates, which are now from 3.23%.
- Amended its affordability stress rate on buy-to-let 5 year fixed rates mortgages to the higher of i) the pay rate, or ii) the reversion rate + 0.75%. Previously, Aldermore’s stress rate for 5 year fixed rates was the higher of i) the pay rate or ii) 5.5%.
In addition to the new affordability stress rate, Aldermore has launched new products which are available immediately:
The new 5 year fixed rate product for standard Buy-to-Let:
- 3.28% for 75% LTV (product fee 2.00%) with reversion rate of 3.23% (stress rate of 3.98%)
- 3.28% for 80% LTV (product fee 2.00%) with reversion rate of 4.53% (stress rate of 5.28%)
The new 5 year fixed rate product for Limited Company Buy-to-Let
- 4.08% for 75% LTV (product fee 2.00%) with reversion rate of 3.33% (stress rate of 4.08%)
- 5.28% for 80% LTV (product fee 2.00%) with reversion rate of 4.53% (stress rate of 5.28%)
Commenting on the new product range, Charles McDowell, Commercial Director, Mortgages, at Aldermore, said:
“These changes are good news for both landlords and limited company Buy-to-Let investors.
“Whilst there have been many changes to the Buy-to-Let market over the last 12 months, the improvement in affordability on our 5 year fixed rate products will provide much needed support to the market.
“The increasing number of renters combined with the on-going supply pressures across the private rental sector is evidence of the integral role Buy-to-Let plays within the UK’s housing market. Our new products reaffirm our commitment to supporting UK landlords.”
For further information, journalists can contact:
Rachael Snelling, Aldermore
Phone: 0208 1853 102
Katie Priddis, Lansons
Phone: 0207 294 3631
Notes to Editors:
For further information about Aldermore, please review our Notes to Editors page
Follow us on Twitter: @AldermoreNews