British challenger bank Aldermore has launched into the let-to-buy mortgage market with a number of new products.

Aldermore’s new offering will allow homeowners to re-mortgage their existing residential property on a buy-to-let basis.

Data from the CML has confirmed that both the number and value of buy-to-let loans has steadily increased over the first three quarters of 2012, rising from 32,300 loans worth £3.7 billion in Q1 to 34,300 loans worth £4.2 billionn in Q3.

Aldermore Bank has itself lent more than £2 billion since first opening its doors for business in the summer of 2009.

The bank also recently cut the rates on its buy-to-let range by up to 0.8 per cent, signalling an intent to offer real competition in the lettings arena.

Charles Haresnape, Managing Director of Aldermore Residential Mortgages, said: “Letting out an existing property rather than selling is an attractive option in today’s housing market. With rental yields continuing to rise in most regions, homeowners can benefit from rising rental demand, whilst at the same time being able to take advantage of lower house prices when buying property for their own use.

“We have seen growing demand for this facility and are delighted to extend our lending criteria to accommodate a let-to-buy option. Existing homeowners can remortgage their home using any Aldermore buy-to-let product.”