Aldermore Bank is streamlining its mortgage product offerings and capping loan to value (LTV) options on residential and buy-to-let products.
the bank says the move will allow it to focus on supporting its existing customers, during a period of high request volumes, while still being able to support the housing market despite challenges due to physical valuations not being able to be conducted in this period of social distancing.
Aldermore will be temporarily reducing its mortgage range open to new customers, including credit-adverse and Help to Buy Equity Loan products, alongside withdrawing its three-year fixed rate products and term variable products.
All HMO and multi-unit freehold products up to six bedrooms/units will be put on hold at this time. Existing applications, where a product has already been reserved, will continue to progress.
Aldermore will continue to offer the following products:
- Standard 70-80% LTV with a £999 fee for purchase and remortgage
- 2 year fixed 70% LTV from 3.18%
- 5 year fixed 70% LTV from 3.38%
- 85% High-LTV with a £999 fee for purchase and remortgage
- 2 year fixed at 4.08%
- 5 year fixed at 4.28%
- Buy-to-let for individuals – Single residential investment properties (up to 75% LTV)
- Buy-to-let for companies – Single residential investment properties (up to 75% LTV)
Due to physical valuations becoming impossible under the government restrictions, Aldermore has in general moved towards remote valuations for owner-occupied properties and buy-to-let single unit applications. Where remote valuations are not possible, Aldermore is currently working through how this can be remedied but until that time more complicated valuation cases have been put on hold until new processes can be created for them or physical valuations recommence.
The bank is offering payment breaks for existing home owner and landlord customers impacted by COVID-19 and is providing three-month mortgage offer extensions to customers that have exchanged.
Jon Cooper, head of mortgage distribution at Aldermore, said: “It has been an extraordinary few weeks for the industry and the country as a whole, and this has led to the necessary decision to temporarily reduce our options for new customers. Our aim is to continue to support the market as much as possible while we work hard to maintain the service required to our customers during this worrying time for many.
“We fully understand and appreciate this is a period of stress and anxiety for many customers and we are focused on providing them with the service and flexibility they expect and need at this time. We would like to thank all our customers and brokers for their patience and understanding at this time – we are here to get through this together.”