Aldermore, NatWest and Skipton renew mortgage offerings

Aldermore reveals new portfolio lending approach for landlords, NatWest cuts fixed rates and cashback and Skipton slashes buy to let rates.

As the new Prudential Regulation Authority underwriting rules edge ever nearer, Aldermore announces its new lending approach to portfolio landlords.

Using standardised templates, the lender will divide portfolio landlords into two separate categories, so as to highlight what further information is required to underwrite each case.

 

Portfolio Landlord -

Standardised Assessment Criteria:  up to 10 mortgaged buy to let properties with Aldermore

Portfolio Landlord -

Enhanced Assessment Criteria: 11 or more mortgaged buy to let properties with Aldermore

 

Documents required:

-          Portfolio schedule

-          Business plan

Documents required:

-          Portfolio schedule

-          Business plan

-          12-month cash flow forecast statement

-          Statement of assets and liabilities

 

In addition to completing the standarised templates, Aldermore will also request face-to-face meetings with landlords who have 11 or more buy to let properties, or who have applied to borrow £1m or more.

The lender will also run checks regarding portfolio affordability testing, rental income validation by postcode, and assessment of living costs and essential expenditure (where personal income is used).

NatWest has cut the rates on many of the residential mortgage products available through brokers, and has reduced the cashback it offers.

The lender’s five-year fixed rate remortgage range will see rate cuts of up to 0.90%.  The cashback on its two-year fixed rate purchase residential range, meanwhile, will be reduced from £500 to £250 and rates cut by 0.23% on this range.

NatWest is also reducing the cashback available on its five-year fixed rate 60% loan-to-value (LTV) purchase loan from £500 to £250 and rates will be reduced by 0.13%.

Skipton is another lender to cut mortgage rates.  Focusing on its buy to let range, the lender is now offering a two-year fixed rate at 1.67% at 60% LTV and a five-year fixed rate 70% LTV mortgage at 2.93%. 

Remortgage customers will now have access to Skipton’s two-year fixed 60% LTV product at 1.69% and a 70% LTV option at 1.99%. 

These products all have fees of £995.  Remortgage offers come with free valuations and standard legal fees, while all purchase products offer a free standard valuation.

The lender has also cut the rates on three of its five-year residential mortgages – all fee free.  These include rates of 2.08% for a 75% LTV house purchase mortgage and 1.91% for a 60% LTV remortgage product.

These announcements were made as Halifax’s latest house price index reveals a 1% monthly dip in June’s house prices. The price for an average house is now £218,390, up 2.6% year-on-year.

 

If you need any assistance call the main broker hotline on 0345 345 6788.

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