Aldermore has announced new changes to its buy-to-let remortgage criteria for properties purchased within the last six months.
The change means Aldermore now allows the maximum loan to reflect the current market value of the property, up to the standard maximum 75% LTV, for remortgages between day one and six months.
For landlords, this will allow them to apply for a buy to let remortgage from the first day post-purchase of the property. Previously the criteria meant the maximum loan for an early remortgage was based on recent purchase price (plus improvement costs), rather than market value. The change empowers landlords to get a better deal and increase their equity, potentially for their next property purchase.
The customer will need to provide evidence of the original purchase price and funds used as part of the application process. The Bank’s underwriters will also need to be comfortable that the case makes sense, including the original purchase having been made at “arm’s length”, for example, purchased via an estate agent or auction. Full property registration at Land Registry will be required prior to completion.
The criteria is available to portfolio and non-portfolio landlords, with free valuation and legal fees.
Jon Cooper, director of mortgages at Aldermore, comments: “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. We’re committed to supporting brokers by continually reviewing our products, to ensure customers get maximum value from us.”
