Aldermore drops need for floating charge on business buy-to-let

McDowell-Charles-2017

Aldermore has removed the floating charge requirement on certain limited company buy-to-let applications.

The lender says a floating charge will no longer be needed on company buy-to-let applications for loans of less than £1m, LTVs or less than 75 per cent, or for applications from SPVs or trading limited companies which have been set up solely for property investment purposes.

Aldermore commercial director Charles McDowell (pictured) says the lender wanted to introduce a “simplified” process and criteria following discussions with intermediaries.

He adds: “We’ve listened to our brokers and customers ‎and in response to the changing face of the limited company buy-to-let market.”

Paragon Mortgages dropped its floating charge requirements in January.

This led to brokers calling for other lenders to follow suit, with one intermediary describing the floating charge as an “archaic way of securing debt, which doesn’t fairly reflect today’s market”.

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