First-time Buyers

Aldermore releases 95 per cent mortgages for limited time

Christina Hoghton
Written By:
Christina Hoghton

Borrowers need just a 5% deposit to get the deal which is one of only a handful on the market

Aldermore has brought back its 95 per cent loan to value (LTV) mortgage deal available for purchases and new-build homes with rates in excess of 5 per cent.

The deals, which are open to all, are only available for a limited period but the bank plans to reinstall the low deposit mortgages permanently in the future.

Two deals are being offered; a two-year fixed rate at 5.08 per cent and a five-year fix at 5.28 per cent. Both deals have a £999 fee.

Jon Cooper, head of mortgage distribution at Aldermore, said: “Aldermore has been a big supporter of the Help to Buy scheme since 2013 and continue to support the equity loan and ISA products.

“But as the market has evolved rapidly the past few years, we believe we can serve low-deposit first-time buyers better going forward, in particular those that are self-employed or that have had credit issues in their past, with our own products and services independent of the scheme.”

The bank has also cut rates on its 85 and 90 per cent LTV deals.

At 85 per cent LTV, the two-year fixed rate has been cut from 4.38 per cent to 4.08 per cent and the five-year fixed rate has been cut from 4.58 per cent to 4.28 per cent. Both deals are available for purchases and remortgages and have a £999 fee.

At 90 per cent LTV the two-year fix has been cut from 5.28 per cent to 4.78 per cent and the five-year equivalent has been lowered from 5.38 per cent to 4.98 per cent.