Aldermore slashes rates after 200% demand rise

Aldermore Bank has reduced the rates on all five-year fixed rate mortgage products across its residential and buy-to-let range, after seeing demand triple over the past year.

Five-year fixed rates on residential mortgages have been reduced from 4.98 per cent to 4.68 per cent on the 75 per cent loan to value product, and 5.18 per cent to 4.88 per cent on the 80 per cent LTV product, while on the buy-to-let 80 per cent LTV product, rates have dropped from 5.28 per cent to 4.98 per cent.

The buy-to-let term variable rate at 75 per cent LTV, previously 4.48 per cent, will now be 4.28 per cent and a previously limited edition term variable rate at 65 per cent LTV will now become part of the standard range at 3.98 per cent.

These rates have been reduced in light of customer demand for longer term fixed rate products, with three times the number of Aldermore’s five-year fixed rate mortgages having been sold in the first half of 2013, compared to the same period last year.

Commenting on the release of the reduced rates, Aldermore’s Residential Mortgages Managing Director, Charles Haresnape, said: “In recent months, five-year fixed rate mortgages have become increasingly popular with our customers and this is a trend which is being reported across the marketplace by brokers.

“We have seen more than three times the number of our five-year fixed rate products being sold in the first half of 2013 compared to the same period last year, and we’ve responded to this by reducing our rates across both our residential and buy-to-let range of fixed products.

“As employment levels rise and the economy continues to recover, along with having a new governor at the helm of the Bank of England, people are waking up to the fact that these rock bottom rates will not continue indefinitely.

“The economic landscape is shifting and consumers are opting to lock in these record low rates for the long term. We expect to see this trend continuing, with more people opting for longer term fixes.”