Another BTL option at 75% LTV! 11.5.2010

Author: Steve Olejnik Posted on: 11 May 2010

Today sees the launch of Aldermore Bank’s advance into the prime Residential and Buy to Let Mortgage market. Great news in particular for the Buy to Let mortgage market with Aldermore Mortgages offering a selection of products up to 75% Loan to Value. (Residential mortgages available up to 80%)

 

Providing welcome evidence of the continued recovery in the Buy to Let mortgage market, Aldermore Mortgages will bring the human touch back to underwriting decisions. Whilst I expect criteria to be cautious at outset (to ensure a soft launch and control of volumes), I believe Aldermore will offer an option for those borrowers who for whatever reason fail mainstream lenders’ credit score despite having a clean credit profile.

 

 Aldermore Mortgages will initially look at vanilla Buy to Let transactions (no new-build or complex residential investment) and will limit applications to just one property per applicant to start with. With an aggressive lending target between now and year end, I would expect criteria to relax once systems and service have bedded in. The more complex residential applications will continue to be considered by the banks commercial mortgage arm.

 

Initial headlines are as follows:

 

-       LTV up to 75% for BTL (80% for Residential Mortgages)

-       2 yr discount rates and 3 & 5 year fixed rates available

-       Banded pricing at 65%, 70% & 75% LTV

-       Maximum Loan £300,000 (£200,000 above 65%)

-       Initially 1 mortgage per applicant

-       No First Time Buyers, First Time Landlords or Let to Buys

-       Proof of income required (minimum £10,000pa)

 

 

Watch this space for news of further improvements in the Buy to Let market over the coming weeks.

 

Author: Steve Olejnik