Aldermore and Hitachi Capital extend a further helping hand to hard-pressed house buyers
New British bank Aldermore is once again extending a helping hand to hard-pressed house buyers via the launch of a new scheme which requires borrowers to raise only a 5% cash deposit.
The scheme, which is initially being marketed via Barratt Homes (including David Wilson Homes and Ward Homes), combines an Aldermore 80% LTV two-year fixed rate mortgage with up to a 15% LTV unsecured loan provided by Hitachi Capital (UK) PLC to cover part of the required deposit. House buyers therefore only have to raise a 5% cash deposit of their own. Further product details are provided in the notes to editors.
Charles Haresnape, Managing Director of Aldermore Residential Mortgages, said: “We are committed to helping struggling home-buyers find solutions to problems which continue to prevent them from owning property of their own.
“The single biggest issue holding back perfectly creditworthy house buyers is their inability to raise a sufficiently large deposit. Aldermore’s recently launched Family Guarantee Mortgage provides an option for borrowers seeking a 100% loan and this scheme gives those who can raise a 5% cash deposit yet another route to home ownership.
“We are providing would-be homeowners with choices, in a market where the options for those with less than a 25% deposit are few and far between.”
Gerald Grimes, Managing Director, Hitachi Capital (UK) PLC, said: “Would-be home buyers have become disheartened with the current housing market because of the large deposits demanded by a lot of lenders. Last year we teamed up with Barratt Homes to offer parents the opportunity to help their children onto the ladder; this year we are opening up this innovative product to the buyers directly. Initially this will be with Barratt Homes but we will be rolling it out through other house builders, such as Linden Homes, part of Galliford Try plc and Keepmoat Homes.
“If the housing market is to fully recover, the issue of deposits needs to be tackled head on. In light of this, I am delighted to be working with Barratt Homes as well as Aldermore to bring a pioneering new product to help stimulate the UK property market”
Earlier this month Aldermore became the first national lender since the onset of the credit crunch to offer a 100% LTV mortgage underpinned by a parental guarantee. Aldermore markets a range of residential and buy-to-let mortgages via regulated intermediaries. Unlike most other lenders, Aldermore’s decision-making is not dependent on credit scoring but is based on sensible underwriting rules and criteria applied by experienced staff.
Full information about Aldermore’s products including rates, criteria and a downloadable product guide, are available at: www.aldermore-mortgages.co.uk or brokers can contact Aldermore on 0333 3211000.
For further information journalists can contact:
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FOR FURTHER INFORMATION ON HITACHI CAPITAL (UK) PLC
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Notes to Editors:
Aldermore Mortgage Product Specification
Product type: Residential mortgage for new build properties located in England or Wales, marketed via Barratt Homes.
Borrowers: First-time and subsequent buyers
Credit Status: Applicants must have a clean credit record. No arrears, CCJs, defaults, bankruptcy orders or IVAs will be permitted.
Max LTV: 80%
Aldermore mortgage rate: 5.48% fixed for 2 years from completion
Reversion rate: 5.73% (Aldermore base rate + 0.75%)
Completion fee: £999
Early repayment charges: 5% in year 1 and 4% in year 2
Purpose of loan: House purchase only
Repayment type: Capital & Interest (no interest only)
Term: Min 10 years max 35 years
Loan amount: Min £25,000 Max £250,000
Income: Min £10,000 an affordability calculation will be used
Hitachi Capital Unsecured Deposit Loan Product Specification
Product type: Unsecured loan provided by Hitachi Capital (UK) PLC, up to a maximum LTV of 15%
Credit Status: Prime, full-status borrowers only
Interest rate: Fixed rate of 5.9% for 12 years
Repayment type: Capital & Interest (no interest only)
Loan amount: Min £5,000 Max £50,000
Overpayments: Are permitted at any time
Aldermore is a new name in British banking and is one of the most strongly capitalised banks in the UK. With backing provided by AnaCap Financial Partners LLP and Morgan Stanley Alternative Investment Partners, Morgan Stanley’s Private Equity Fund of Funds business, Aldermore raises deposits from consumers and lends to homeowners and small and medium sized businesses.
Aldermore does not depend on the wholesale, securitisation or international capital markets and has not been involved in any banking activities or the marketing of any exotic products which have been the cause of problems for so many financial institutions.
As a British bank, Aldermore is regulated by the Financial Services Authority and is registered under the Financial Services Compensation Scheme, which means customers’ savings are protected up to the statutory limit of £85,000 per person. Aldermore is also a member of the Council of Mortgage Lenders.
Aldermore markets its residential and buy to let mortgages via professional financial advisers located throughout England and Wales and all mortgages are underwritten and administered from an office in Wilmslow, Cheshire.
Aldermore also market a range of commercial mortgages via specialist commercial finance brokers located throughout England and Wales. Commercial mortgages are underwritten and administered via Aldermore’s head office in Peterborough.
About Hitachi Capital
Hitachi Capital Consumer Finance is part of Hitachi Capital UK (PLC), which in turn is part of Hitachi Ltd, one of the most respected companies trading in the world today. Founded in 1982 Hitachi Capital Consumer Finance is the leader in providing innovative in-store and web-based point of sale finance solutions to the UK retail sector. Additional information about Hitachi Capital Consumer Finance is available at: www.hitachicapital.co.uk
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