Challenger bank Aldermore has announced it is to enter the Help to Buy mortgage guarantee scheme.
Having already announced its intention to do so, it will officially join the scheme on December 16th.
As well as being the first challenger bank to join the scheme, Aldermore is also the first to offer the mortgage guarantee on remortgage deals as well as purchases. A challenger bank is typically a smaller bank which challenges the main four, which are Barclays, HSBC, Lloyds Banking Group and RBS.
Charles Haresnape, managing director of Residential Mortgages at Aldermore, said that he was “delighted” to announce Aldermore’s participation in Help to Buy guarantee.
“We are committed to lending to homeowners 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,” he added.
The bank will offer two-year fixed rate mortgages for loans between 85.01 per cent and 95 per cent. The government-guaranteed scheme requires a five per cent deposit, and that the property in question is worth no more than £600,000.