Aldermore bank joins Help to Buy scheme

One of Britain's newest banks has became the latest lender to launch products under the Government's extended Help To Buy scheme.

Aldermore, which was founded in 2009, is to make the mortgage guarantee available on remortgages as well as new home purchases.

From today, it will offer two-year fixed-rate products at 4.98 per cent for up to 90 per cent loan-to-value (LTV) and 5.28 per cent for up to 95 per cent LTV. There will be a £999 fee on both.

The Help To Buy scheme, which offers government-backed guarantees to those hoping to get on the property ladder with deposits as low as 5 per cent, is currently being used by Lloyds Banking Group, Royal Bank of Scotland and HSBC and Virgin Money.

Other banks including Barclays and Santander have also announced their intention to take part.

Aldermore's director of residential mortgages Charles Haresnape said: "We are committed to lending to home-owners in the UK, especially those with small deposits, to get on the housing ladder and those who are unable to access mortgages from traditional high street lenders, despite being creditworthy.

"We are delighted to be offering remortgages under the scheme as well."

The company, which is backed by private equity company AnaCap, launched its residential mortgage business from scratch in May 2010.

Aldermore also lends to small and medium sized businesses.

PA