Aldermore planning second 100% LTV deal
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Aldermore is planning to launch another 100% LTV mortgage in the next few months, Mortgage Strategy can reveal.
The lender is looking to offer a variant of its family guarantee mortgage which requires the borrower’s parents to deposit savings with the lender rather than taking a charge on their property.
Aldermore says it will pay a competitive rate of interest on the savings, and when the LTV on the mortgage falls below a certain level, estimated to be around 75%, it will release the money.
Charles Haresnape, managing director of residential mortgages at Aldermore, says the details are still being worked out but he expects to bring the product to market this quarter.
He says: “We see this as giving parents another option, so if they don’t want to gift a deposit to their child or put a charge on their property, they can put their savings with us in lieu of a deposit and still retain ownership of them.
“This is Aldermore looking at different options for first-time buyers and doing its bit to send out a positive message to consumers and help revive the first-time buyer market.”
In September 2011 the lender was the first to launch a 100% LTV mortgage since the onset of the credit crunch. It has a two or three-year fixed rate of 5.98% and parents, step-parents or grandparents are asked to provide a guarantee secured against their residential property for the amount of loan above 75% LTV.
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Readers' comments (2)
Steve Wentworth | 4 Feb 2012 11:49 am
Great work Aldermore, certainly one of the most creative lenders at the moment. Great to give options on the guarantor deal.
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Grey Haired Underwriter | 7 Feb 2012 2:09 pm
Is MS a subsidiary of Aldermore - giving so much prominence to an idea that is as old as a collateral charge against a parental home. Heck I know that small Societies have been lending by using a lien of charge against cash hel dince the 1970s.
Stop acting as though this is some massive new innovation by a trendy new lensder when the idea has been around longer than 36 years in the industry. The only new bit is 100% - I hope that Aldermore are ensuring the parents take full and independent legal advice as well
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