Specialist UK mortgage lender Aldermore has recently announced the launch of a new suite of mortgage products tailored specifically for portfolio landlords. With this new product range, Aldermore aims to provide portfolio landlords with greater flexibility and competitive financing options to expand their property portfolios. Over the last few months, buy-to-let borrowers have really taken a beating with interest rate hikes and stricter affordability tests and these new products could really provide some much needed support to professional landlords.
The Portfolio Landlord Mortgage Product Range From Aldermore
Aldermore’s newly unveiled portfolio landlord mortgage product range consists primarily of fixed-rate five-year loans. These loans are set to hit the market on the 27th of September 2023. The lender’s comprehensive range is designed to cater to the diverse needs of both individual and limited company landlords. Although please do remember to speak to your mortgage broker about potential associated fees. Let’s delve into the specifics of the new products:
Individual and Company Landlords with Single Residential Investment Properties
For those seeking financing for single residential properties, Aldermore offers a competitive interest rate of 5.09%. This rate is available for loans with a loan-to-value (LTV) ratio ranging from 0% to 75% meaning that new purchasers can put down as little as 25% deposit to access these new products. This level of flexibility with loan to values ensures that landlords, whether experienced or new to the market, can access suitable financing to acquire or refinance their properties and hopefully continue to make a healthy income from their investments.
Multi-Property Products for Individual and Company Landlords
For landlords looking to expand their portfolios with multiple residential investment properties, Aldermore provides an equally enticing offer. The same 5.09% interest rate is available for this category of borrowers, covering residential properties with LTV ratios ranging from 0% to 75% too. This inclusive approach reflects Aldermore’s commitment to catering to the varying needs of portfolio landlords as well as landlords with a smaller amount of properties.
Aldermore’s Portfolio Buy-to-Let Lending Criteria
While offering competitive interest rates is undoubtedly appealing, portfolio landlords should also be aware of the lending criteria set by Aldermore to ensure a seamless application process:
1. Minimum Portfolio Size: Aldermore requires portfolio landlords to have a minimum portfolio size of four mortgaged buy-to-let properties or £2 million in lending.
2. Property Types: The lender accepts a wide range of property types, including standard residential, Houses in Multiple Occupation (HMOs), and multi-unit blocks (MUBs).
3. Property Valuation: Properties must be valued at a minimum of £50,000.
4. Experience: Aldermore expects portfolio landlords to have at least two years of experience in managing buy-to-let properties.
5. Maximum LTV: The maximum loan-to-value ratio is capped at 75%.
6. Rental Coverage: Rental coverage requirements vary based on the tax bracket and property type but generally range from 125% to 145%.
7. Personal Guarantees: Personal guarantees may be required for limited companies.
Supporting Portfolio Landlords
With the introduction of this new portfolio landlord mortgage product range, Aldermore aims to support landlords, whether they are seasoned property investors or just starting in the market. The competitive interest rates and flexible LTV ratios create opportunities for portfolio expansion and financial growth. By accommodating various property types and offering favourable lending criteria, Aldermore demonstrates its commitment to supporting the diverse needs of portfolio landlords in the ever-evolving buy-to-let market. These mortgage products could serve as a catalyst for many landlords looking to capitalize on the continued demand for rental properties.
As with any financial decision, it’s essential for portfolio landlords to conduct a thorough assessment of their circumstances, investment strategy, and financial goals before committing to a mortgage product. Consulting with a financial advisor or mortgage specialist can provide valuable insights and guidance in making the right choice. As experts in buy-to-let and portfolio buy-to-let lending, our advisors are on hand to answer any questions you might have and offer any help and guidance that we can. Call or email our team today to get the ball rolling.