Aldermore, the lender which is behind the new product, said it was extending its remortgage range in a bid to support homeowners who did not fit the ‘cookie cutter’ mould often required by other providers.
Borrowers who cannot remortgage have no choice when their introductory deal has finished but to switch to their lender’s standard variable rate (SVR), often known as a reversion rate, which is typically more expensive.
Research out this week from Dashly, a mortgage switching platform, revealed nearly four in ten British homeowners have been on their mortgage lender’s SVR at some point in the past.
Dashly pointed out each month people spent paying their mortgage using the SVR, they were potentially spending hundreds of pounds unnecessarily.
Aldermore said it has a ‘human approach’ to lending which enabled to consider each case on individual merits so it could support people to find the right mortgage.
Damian Thompson, director of mortgages at Aldermore said: “We want to help homeowners who are struggling to refinance after their fixed term ends due to having credit blips or complicated financial histories.
“It does not seem fair that many borrowers, who have been paying off their mortgage just fine month-to-month on costly reversion rates, shouldn’t have the opportunity to move onto a better deal.”
Its new mortgages come with no valuation, legal or product fees and are available to borrowers who need to borrow up to 75% of their property’s value. Rates start at 3.78%.
Could someone please let us have more information as we took out a 2nd mortgage at a high rate because of this problem.
You should be able to find out more by visiting the lender’s website http://www.aldermore.co.uk. But please get back to us if you need any more help.