British challenger bank, Aldermore has launched into the let-to-buy mortgage market by allowing homeowners to remortgage their existing residential property on a buy-to-let basis.
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.”
Data from the CML confirms that both the number and value of buy-to-let loans steadily increased over the first three quarters of 2012, rising from 32,300 loans worth £3.7bn in Q1, to 34,300 loans worth £4.2bn in Q3.
Aldermore Bank has lent more than £2 billion since first opening its doors for business in the summer of 2009.