Aldermore has updated its buy-to-let (BTL) remortgage criteria for properties that have been purchased within the last six months.
Aldermore will now allow the maximum loan to reflect the property’s current market value, up to 75% loan to value (LTV). This will apply to remortgages between day one and six months.
This change will allow landlords to apply for a remortgage from the first day post-purchase of a property.
The previous criteria meant the maximum loan for an early remortgage was based on the recent purchase price, plus improvement costs, rather than the market value.
Aldermore said the change would allow landlords to get a better deal by increasing their equity, which could potentially be used for a further property purchase.
The customer will need to provide evidence of the original purchase price and funds used as part of the application process.
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Aldermore’s underwriters will also need to be comfortable that the case makes sense, such as knowing the purchase was made through an estate agent or auction.
Full property registration at Land Registry will also be required before completion.
The criteria is available to portfolio and non-portfolio landlords, with free valuation and legal fees.
Jon Cooper, director of mortgages at Aldermore, said: “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.
“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.”
