Aldermore offering limited company mortgages

by Aaron Strutt

Jan 22 2016

Aldermore Bank is offering a range of limited company mortgages for clients purchasing investment properties.

The lender moved some of its specialist buy-to-let mortgages away from its commercial proposition, and its rates are now more competitively priced.

Aaron Strutt, product manager at Trinity Financial, says: “Landlords are looking for ways protect themselves from George Osborne’s tax changes and the lenders have improved their limited company rates to attract more clients.”

Aldermore’s qualification criteria

Trading limited companies can be used to purchase properties and they do not have to be Special Purpose Vehicles.

The bank will accept Limited Liability Partnerships (LLPs) and Special Purpose Vehicles (SPVs) providing a director’s guarantee is provided.  

The bank offers mortgages for Houses of Multiple Occupation (HMO’s) – also up to four flats on a single freehold and expat buy-to-let's.

Mortgage rates

Aldermore Bank's most competitively priced rate is a 3.93% term tracker rate, priced at 3.33% over LIBOR. The overall cost for comparison is 4.5% APR.

Applicants will require a 20% deposit for mortgages up to £400,000. This increases to 25% for mortgages up to £600,000 and 30% up to £1 million.

There is a 3% completion fee and early repayment charges apply from the first three years. The bank typically allows up to 10% of the outstanding balance to be repaid each year without charge.

For help to secure a limited company mortgage call Trinity on 020 7016 0790.