Challenger bank Aldermore (ALD) got off to a strong start this year, with new loans up 43 per cent to £814m during the first quarter. Unsurprisingly buy-to-let loans were up 144 per cent to £327m, as investors scrambled to purchase properties before the implementation of the stamp duty hike in April. This meant total mortgage loans were up 60 per cent on the previous year.
Chief executive Phillip Monks said it would not be surprising to see a slowdown in buy-to-let lending during the second quarter against such strong comparables at the start of the year. "We won't really see the new norm until the fourth quarter," he said. Elsewhere, lending to SMEs was up 18 per cent to £272m. Mr Monks said there are also growth opportunities in asset finance, since the bank still has a relatively small market share.
