Aldermore slashes 5-year fixed rates

The challenger bank’s 5-year fixed rates on residential mortgages have been reduced from 4.98% to 4.68% on the 75% loan to value product, from 5.18% to 4.88% on the 80% LTV product, while on the buy-to-let 80% LTV product rates have dropped from 5.28% to 4.98%.

The buy-to-let term variable rate at 75% LTV, previously 4.48%, will now be 4.28% and a previously limited edition term variable rate at 65% LTV will now become part of the standard range at 3.98%.

Charles Haresnape, Aldermore’s residential mortgages managing director, said: “In recent months, 5-year fixed rate mortgages have become increasingly popular with our customers and this is a trend which is being reported across the marketplace by brokers.

“We have seen more than three times the number of our 5-year fixed rate products being sold in the first half of 2013 compared to the same period last year and we’ve responded to this by reducing our rates across both our residential and buy-to-let range of fixed products.

“As employment levels rise and the economy continues to recover, along with having a new governor at the helm of the Bank of England, people are waking up to the fact that these rock bottom rates will not continue indefinitely.

“The economic landscape is shifting and consumers are opting to lock in these record low rates for the long-term. We expect to see this trend continuing, with more people opting for longer term fixes.”