First-time Buyers

Aldermore reduces rates for borrowers with the smallest deposits

Christina Hoghton
Written By:
Christina Hoghton

The specialist bank has cut the cost of its 95% mortgages, for those with just 5% upfront

Aldermore has reduced the rate on its two-year fixed high loan-to-value (LTV) mortgage, which is available up to 95% of the property’s value.

The new rate, which can be taken on mortgages up to £400,000, is now 4.58%, cut from 4.78%.

Damian Thompson, director of mortgages at Aldermore, said: “Our latest First-Time Buyer Index shows that raising a deposit remains the biggest barrier to those looking to purchase their first home.

“Many in the UK are in a position where they are able to afford mortgage repayments but are being frustrated by the struggle to raise a substantial deposit, so we want to continue to open up options for them to turn home ownership into a reality.”

The move follows a reduction in rates from Nationwide earlier this week on its range of high loan-to-value mortgages.