Buy 2 Let Lending Picks Up 08/04/2011
“Aldermore appear to be offering reasonable Buy to Let mortgage solutions to existing investors” Alison O’Connor
Article: The Residential Landlord Association
A gradual improvement in the availability of buy-to-let financing is being seen.
New bank Aldermore has increased the maximum number of properties it will accept on residential buy-to-let mortgage applications from two to three, subject to a total exposure of £1m.
Applicants must own at least one existing buy-to-let property.
Aldermore works with clients to assess affordability, and rental coverage should be 125% at the product pay rate or reversion rate, whichever is higher.
Aldermore has been making waves amongst the financial community because, although it has a traditional approach to underwriting and does not rely on automated processes, it will consider applications from borrowers turned away by other lenders.
Meanwhile, Skipton Building Society has made a cautious return to the buy-to-let market after a two-year break. It is offering two- and three-year fixed rate mortgages at 60% LTV.
There is an application fee of £245, and a completion fee of £1,250 which can be added to the loan.
Also, Whiteaway Laidlaw Bank is launching a commercial lending arm offering loans for property investors.
WLB, which has had a banking licence since 1971, used to be part of the Manchester Building Society but is now owned by Royal Bank of Scotland.