Aldermore eases its buy to let remortgage criteria

Aldermore eases its buy to let remortgage criteria

0:06 AM, 28th November 2024, About 5 days ago

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Aldermore has announced a relaxation of its buy to let remortgage criteria for properties purchased within the last six months.

The move is designed to provide landlords with greater flexibility and potentially unlock funds for further property investments.

Previously, the maximum loan for an early remortgage was based on the recent purchase price, plus any improvement costs.

Now, the lender will allow the maximum loan to reflect the current market value of the property, up to a standard maximum loan-to-value (LTV) ratio of 75%.

Apply for a BTL remortgage

The change means landlords can apply for a BTL remortgage from the first day after purchasing a property, allowing them to potentially secure a better deal and increase their equity.

To qualify for the new criteria, landlords will need to provide evidence of the original purchase price, and the funds used to purchase the property.

The property must also have been purchased at ‘arm’s length’, such as through an estate agent or auction, and must be fully registered with the Land Registry before completion.

‘Unlocking funds for portfolio expansion’

Aldermore’s director of mortgages, Jon Cooper, said: “This provides brokers with an opportunity to help their landlord clients secure better deals based on current market values, potentially unlocking funds for portfolio expansion.

“With the additional Stamp Duty on second homes increasing from 3% to 5% in the Autumn Budget, landlords are under growing pressure.”

Buy to let rates for landlords

In addition to the relaxed remortgage criteria, Aldermore has also launched new buy to let rates for landlords.

Its new limited-edition two-year fixed-rate products are for both individual and company landlords with single residential investment properties and multi-property landlords.

The lender has also introduced new product switch rates for existing customers with large HMOs (7+) and multi-unit freeholds (5+).

Mr Cooper said: “These latest limited-edition rates across our BTL range will help landlords, whether they’re a first-time investor or seasoned pro, to find the mortgage that’s right for them.”

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below:

Contact Brooklands Commercial Finance

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