Aldermore Bank has just announced considerable reductions in their mortgage rates. Starting from Tuesday, 16th January, the lender is implementing a 0.50% cut across both its residential and buy-to-let mortgage products.

Residential Mortgage Changes

For those looking to buy their own home, Aldermore’s rate reduction is particularly good news. The bank has slashed the fixed rates for new borrowers by 0.50%, with rates now beginning at a competitive 5.04%. Existing customers aren’t left out either; they can also enjoy reductions of up to 0.50%.

Enhanced Loan-to-Value Ratios

Aldermore is not just cutting rates; they’re also making it easier to borrow more against the value of properties. The bank has reintroduced lending at up to 95% Loan-to-Value (LTV), a significant boost for those struggling to accumulate large deposits. For new builds, the maximum LTV has increased to 90% for houses and 85% for flats. Moreover, for those looking to remortgage and raise capital for non-property related purposes, the LTV cap is now 85%.

Buy-to-Let Mortgages

The news is equally positive for landlords. Aldermore has reduced all fixed rates in its buy-to-let range by 0.50% for both new and existing customers. The rates now start from 4.29% for individual and company landlords and 4.79% for Houses in Multiple Occupation (HMO) and multi-unit freeholds.

A Strategic Move in a Competitive Market

Jon Cooper, the head of mortgages at Aldermore, remarks on the dynamic shifts in the property market since the beginning of 2024. He notes that lenders are actively responding to a competitive rate environment. Aldermore’s decision to reduce rates and increase LTVs comes after a thorough market analysis, aiming to better serve borrowers.

Cooper emphasizes that these changes are designed to support customers where options are limited, especially at the higher LTVs. Aldermore aims to empower its broker partners to support a wider range of clients, whether they are landlords or owner-occupiers, in achieving their property aspirations.