Aldermore has announced improvements to ease remortgage criteria for properties purchased within the past six months.
Lenders currently allow loan limits that reflect the property's current market value, up to 75% of the standard maximum LTV for refinances from day one to six months. 
For landlords, this allows them to apply for a purchase to refinance mortgage from day one after purchasing a property. Previously, this standard meant that the maximum loan amount for an early refinance was based on the recent purchase price (plus the cost of improvements) rather than market value. This change will allow landlords to obtain better deals and increase their equity for their next property purchase.
Customers must provide original purchase price and proof of funds used as part of the application process. Underwriters also need to be reassured that a lawsuit makes sense, including that the original purchase was made “at arm’s length,” such as through a real estate agent or an auction. A full property registration with the Land Registry will be required prior to completion.
This standard is available to portfolio owners and non-portfolio owners and is free of valuation and attorney fees.
Commenting on the changes, John Cooper, Mortgage Director at Aldemore, said: “This gives brokers the opportunity to help their landlord clients secure better deals based on current market values, potentially freeing up capital for portfolio expansion.”
He added: “The Autumn Budget increases additional stamp duty on second homes from 3% to 5%, increasing pressure on landlords. We are committed to ensuring our customers get the most value from us. We are committed to continually reviewing our products and supporting brokers to ensure that they receive the best possible results.
