Buy to Let Mortgage Market gets Competitive

10 January 2012 Categories: News

Buy to Let Mortgage Market gets Competitive

It seems that the news of Paragon’s 50 new buy to let mortgage products, released onto the market last week, has started more lenders thinking about the competitiveness of their buy to let products. This week sees the residential lender Aldermore raise the stakes further with lower interest rates and a LTV figure not seen for many years.

Yesterday Aldermore announced that, effective immediately, they are to increase their maximum LTV to a very tempting 80% on all fixed rate residential buy to let mortgages. In addition the lender has also reduced many of their interest rates, including their popular 2-year discount rate and their 3 and 5 year fixed rates; the overall result being a much more attractive package for potential borrowers.

The changes don’t stop there though.

As an additional incentive to those landlords who have plans to buy additional investment properties in the future, Aldermore are now willing to lend to landlords with a maximum portfolio size of 5 properties rather than 3, with a total worth of £2million rather than the standard £1million.    

When asked about the changes Charles Haresnape, managing director of Aldermore said “The enhancements to both criteria and rates will ensure that Aldermore’s residential buy-to-let products are amongst the most competitive available, and I have no doubt they will be popular with both brokers and their clients.”

Let’s hope other big lenders follow suit in the near future.