The South African owner says it is selling Aldermore Bank, which has established itself as a buy to let lender specialising in more complex deals.
FirstRand, one of South Africa’s largest lenders, says the sale is in response to the Financial Conduct Authority’s plans for car finance mis-selling compensation.
FirstRand claims the scheme is “deeply flawed” and meant owning a UK finance company is no longer “within the group’s risk appetite”.
Aldermore has previously been an enthusiastic supporter of buy to let investors.
It says on its website: “High street lenders often penalise landlords for having a buy to let portfolio, seeing it as a reason not to lend, but we take a different approach.
“We see your property portfolio as an advantage, rather than a disadvantage.
“Whether you’re an established landlord, or you’re actively looking to grow your buy to let portfolio, we can help.
“We’ll help maximise borrowing from rental income to help you build your property portfolio.
We can support you with releasing equity to re-invest in new properties and we lend on a range of property types, including HMOs.”
Some analysts suggest that concern over the car finance compensation proposals – which affect a number of lenders operating in fields beyond just property – may change the risk appetite of companies across the board.
FirstRand acquired Aldermore in 2017.
This article is taken from Landlord Today