Aldermore says it has cut its product switch rates to some of its lowest levels for existing customers.
The bank adds it has aligned some of its five-year fixed-rate options with its two-year fixed-products, so customers can fix at the same rate for longer and have certainty that their mortgage payments won’t increase at a time when living costs are rising.
The products are available to both residential owner-occupied and buy-to-let customers with single residential units once they have reached the end of their initial fixed-rate period, or their early repayment charges come to an end.
The new product switch rates for existing customers will take effect immediately and are available with no legal or valuation costs.
Owner-occupied standard range and high loan-to-value highlights include:
* Two-year fixed rates – from 2.50% reduced by up to 0.20% across 70%, 75% and 80% LTVs
* Five-year fixed rates – from 2.50% reduced by up to 0.50% across 60% to 90% LTVs, across all products.
BTL for single residential units for individual landlords highlights include:
* Two-year fixed rates – from 2.70% reduced by up to 0.25% across 60%, 65%, 70% and 75% LTVs
* Five-year fixed rates – from 2.70% reduced by up to 0.65% across 60% to 85% LTV, across all products
BTL for single residential units for company landlords highlights include:
* Two-year fixed rates – from 2.95%, reduced by up to 0.20% across 70% and 75% LTVs
* Five-year fixed rates – from 2.95%, reduced by up to 0.60% to 85% LTV, across all products
The bank says all existing customers can be considered for a product switch provided their mortgage payments are up to date, within its eligibility criteria.
Aldermore head of mortgage distribution Jon Cooper says: “I’m delighted to introduce our new product switch range which offers some of our cheapest rates yet and, alongside our streamlined broker switching portal, we’re providing benefits to both brokers and customers alike.
“2022 is a year we want to show our ambition to seek growth and innovation in what services we can provide for our customers and broker partners. This is a next step in that process as we continue to deliver the best products we can and ensure our service is as straightforward and seamless as possible.”
The lender’s move comes after inflation hit a 30-year high of 5.5%, according to the Office for National Statistics yesterday, the highest level since March 1992.
Earlier this month, the Bank of England doubled the base rate to 0.5% from 0.25%, the second rise from its historic 0.1% low in three months.
