Aldermore updates remortgage criteria; Fleet reintroduces high EPC five-year fixes
Aldermore and Fleet Mortgages have unveiled changes to their buy-to-let offerings, introducing new products and criteria designed to support landlords navigating an increasingly challenging market.
Aldermore has updated its remortgage criteria, now allowing landlords to secure loans based on a property’s current market value from day one after purchase, up to 75% loan-to-value (LTV).
Previously, the maximum loan for early remortgages was restricted to the original purchase price plus improvement costs. This change enables landlords to unlock equity sooner, potentially facilitating portfolio expansion.
To qualify, applicants must provide evidence of the purchase price and funds used, with Aldermore’s underwriters ensuring cases meet their standards, including “arm’s length” purchases. Full property registration with the Land Registry is also required before completion. The revised criteria, available to both portfolio and non-portfolio landlords, includes free valuation and legal fees.
“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,” said Jon Cooper (pictured left), director of mortgages at Aldermore. “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.”
Meanwhile, Fleet Mortgages has relaunched its five-year fixed rate products for landlords purchasing or remortgaging properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’.
Available across its standard, limited company, and house in multiple occupation (HMO)/multi-unit block (MUB) ranges, the products are priced at 5.04% for standard and limited company options, and 5.44% for HMO/MUB loans, all with a 3% fee (minimum £750).
Fleet also continues to offer a £1,000 cashback incentive for borrowers who improve their property’s EPC rating to a ‘C’ or higher during their fixed-rate term. Additionally, rates on its two-year product transfer options for existing customers have been reduced by 10 basis points, now starting at 4.59% for standard and limited company borrowers and 4.89% for HMOs.
Steve Cox (pictured right), chief commercial officer at Fleet Mortgages, noted the growing importance of energy efficiency in the private rental sector, with all properties required to meet an EPC rating of at least ‘C’ by 2030.
“There are compelling reasons for landlords to improve their properties and secure mortgage price discounts. Over a five-year term, these ‘A’ to ‘C’ options provide significant savings, and our cashback offer helps offset the costs of improvements,” he said.
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