Challenger bank Aldermore has announced that it has more than doubled its buy-to-let (BTL) origination over the past 12 months
Just a month after revealing a record 88% jump in profits in its annual results, the bank’s Q1 2016 BTL figures have surged to £327m, up from £134m in Q1 2015.
Phillip Monks, CEO of Aldermore said that the run up to the newly-implemented stamp duty changes majorly contributed to the BTL growth.
“We took advantage of the anticipated extra demand for BTL mortgages, ahead of the introduction of the additional stamp duty from 1st April 2016, and more than doubled our BTL origination compared with the first quarter of 2015.
“As a result, we have increased net lending by 6% since the start of the year with deposits continuing to grow to support our lending activity.”
Aldermore’s business finance origination was also up by 18% to £272m, and its mortgage origination increased by 60% to a colossal £542m.
“We have made an excellent start to the year with our best ever quarter of origination as we delivered double digit growth in new lending in both our business finance and mortgages divisions,” Phillip added.
“Market conditions in the first quarter of 2016 remain broadly consistent with those experienced last year, with a relatively benign credit environment and interest rates unchanged.
“We continue to focus on our strategy of supporting UK SMEs, homeowners, landlords and savers and remain confident of delivering on all of the guidance we set out with our recent 2015 full year results, including generating nominal net loan growth in line with recent run rates and strong returns on equity.”
This month, Aldermore slashed rates across its entire commercial mortgage range and launched its bridging proposition into the Scottish bridging market in April.
