Aldermore improves affordability on five-year fixes

Aldermore has amended its affordability stress rate on five-year fixed rate buy-to-let mortgages to the higher of the pay rate or reversion rate + 0.75%, down from pay rate or 5.5%.

Related topics:  Mortgages
Rozi Jones
5th April 2017
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"The improvement in affordability on our five-year fixed rate products will provide much needed support to the market."

It has also reduced reversion rates, which are now from 3.23%. In addition to the new affordability stress rate, Aldermore has launched new five-year fixed rate products.

New standard buy-to-Let rates include a 3.28% at 75% LTV with reversion rate of 3.23% (stress rate of 3.98%) and a5.28% for 80% LTV (product fee 2.00%) with reversion rate of 4.53% (stress rate of 5.28%).

Limited company five-year fixed rates now start from 4.08% at 75% LTV with reversion rate of 3.33% (stress rate of 4.08%) and at 5.28% up to 80% LTV with reversion rate of 4.53% (stress rate of 5.28%)

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 five-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.”

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