New lender Aldermore launches

A new lender has entered the UKs buy-to-let mortgage market.

Aldermore has a range of fixed and variable buy-to-let mortgage products. One that took my eye was the 5 year fixed rate priced at 5.93%. The downside is that it is only available up to a maximum of 65% LTV.

However, with the OECD advising the Bank of England to raise interest rates by 3% over the next 3 years and inflation touching 4% landlords buying a new buy-to-let investment with such a long-term fix have the comfort of a stable cashflow for at least 5 years. It's the way I'm going to go with my new investments.

Full details of the Aldemore product range are:

NEW DISCOUNTED VARIABLE RATE MORTGAGES available via selected intermediaries only, for second time buyers & remortgage: 4.98% for 2 years (0.60% discount), max 65%, fee 1.25%, reverts to Aldermore managed rate + 0.50%; 5.68% for 2 years (0.05% discount), max 70%, fee 1.75%, reverts to Aldermore managed rate + 0.75%; 5.78% for 2 years (0.20% discount), max 75%, fee 2.25%, reverts to Aldermore managed rate + 1%, all have incentive for remortgages of free legal fees.

NEW FIXED RATE MORTGAGES available via selected intermediaries only, for second time buyers & remortgage: 5.78% for 3 years, max 65%, fee 1.50% of advance, reverts to Aldermore managed rate + 0.50%; 5.78% for 3 years, max 70%, fee 2% of advance, reverts to Aldermore managed rate + 0.75%; 5.78% for 3 years, max 75%, fee 2.50% of advance, reverts to Aldermore managed rate + 1%. Minimum rental requirement calculation on the above products is based on 125% of mortgage interest at the higher of pay rate or revert rate. W.e.f. 24.5.10.

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