The lender revealed, while the reintroduction was temporary, it may look to make the move permanent in the near future.
Aldermore said it was better able to serve borrowers with more complex needs thanks to its ‘enhanced human underwriting’ process which was crucial to understanding the ever-widening range of circumstances arising from the pandemic.
Greg Cunnington, director of lender relationships and new homes, Alexander Hall, welcomed the move and said it was great news for this ‘important’ part of the market.
“The more support for buyers with a 5% deposit in the market the better,” he said.
“Aldermore’s flexible approach to underwriting, and ability to manually assess client scenarios, means this move will help even more buyers to be able to enter the property market once more.
“The products being available to home movers and buyers of new build houses is fantastic news, and these product launches will be very well received by intermediaries such as ourselves.”
The 95% LTV products being launched consist of a two-year fixed rate of 5.08% (£999 fee purchase only) and a five-year fixed deal at 5.28% (£999 fee purchase only).
Their release comes as Aldermore bank reduced the rates on its 85% and 90% LTV products.
Jon Cooper, head of mortgage distribution at Aldermore, said: “We’re delighted to be one of the first lenders to reintroduce our 95% LTV proposition to meet the strong demand from first-time buyers right now.
“Lockdown has given many people the chance to focus on their long term goals and, with three fifths (63%) of first time buyers saying they are now more motivated to buy, we want to provide greater choice and opportunity to help new buyers realise their dreams of becoming home owners.
“While initially introduced for a limited time period, we look forward to permanently introducing our 95% LTV proposition in the near future.”
He added: “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.”
