Aldermore Share Discussion Threads

[matt] 26/11/2015 14:26

Lump the extra stamp duty on the mortgage and increase the rent?

[nurdin] 26/11/2015 14:19

So why cant new buy to let borrowers simply increase the rental price to recoup the higher stamp duty? Or is that too naive a view point?

[matt] 26/11/2015 14:11

So only 30% of the 40% of loan book is new buy to let. Making just 12% of their total loan book on new buy to let. Is that correct?

[toyin] 26/11/2015 13:14

FYI

Hello Chris

Thank you for your email.
As disclosed in our half year accounts, we have a fairy diversified loan book across Asset Finance, Invoice Finance, SME Commercial Mortgages and Residential Mortgages.
Within this loan book around 40% is Buy-to-Let and 60% is non buy-to-let.

Please note that the stamp duty announced by the Chancellor affects only new purchases while c70% of our buy-to-let book is remortgages so our customers are not affected to that extent.
The Chancellor also announced a number of initiatives for First Time Buyers and we are well positioned to capitalise on that.

Let me know if you have any other questions.

Regards
Amit

[paleje] 26/11/2015 11:20

Cheers Aishah.

[aishah] 26/11/2015 11:13

Aldermore downgraded by Deutsche Bank on buy-to-let worries

Posted 3 hours ago Banking, Shares

UK Chancellor of the Exchequer George Osborne’s Autumn spending review may have had some pearls for UK homebuilders – he wants a lot more houses – but the buy-to-let (BTL) market faces tax increases and the lenders that fund it are under pressure.

Many so-called “challenger banks”– smaller lenders that sprang up in the wake of the financial crisis – are particularly prone to BTL lending, and they saw their shares whacked after Osborne ended his speech on Wednesday.

Now come the downgrades.

Reading-based challenger bank and newish FTSE 250 member Aldermore is an early casualty, taken down to a Hold rating from Buy at Deutsche Bank, which has also lowered its target price, to 267 pence from 330p. More than 40% of its loans are BTL-related.

The German bank notes Aldermore’s previous statement that changes to BTL tax relief already made had not hit its third-quarter loan volumes, and that large, corporate property owners may be exempt from the latest changes.

“However, we suspect that the combined effect of these two measures (and potential further regulatory change) could see growth in the BTL market slowing,” Deutsche Bank’s analysts write.

“Aldermore is indeed a small player in the market, and could take share from other players, but we think a lower-growth market could see greater price competition between peers, and/or a move for Aldermore to increase its share of owner-occupier mortgages (which are lower margin, and lower Return on Equity due to Aldermore’s 35% standardised risk weight).”

Deutsche Bank doubts there will be clarity on the changes’ full impact until after April next year, when changes in stamp duty will kick in.

news.markets

[kevph] 26/11/2015 11:01

13/11 Deutsche Boost target 323 to 330
25/11 Deutsche reiterate buy at 330
26/11 Deutsche downgrade to hold at 267

Not doing much for their reputation is it?. I guess this is why the analyst is still working, not investing for a living.

If 3% stops landlords buying (which is unlikely as paleje points out) then it goes to the private sector to buy. Guess what? It may go for slightly less money, but the private sector buyer needs a mortgage as well. Not sure what the fuss is about. If something is going on it can't be this, surely?

[paleje] 26/11/2015 10:46

Well Deutsch must have their reasons, but to my thinking 3% wouldn't dissuade anyone from buying to let, they will buy cheaper or load tenants. A £1000/month rental add £30 or a bit more is nothing. But I suppose and we'll tread water for some time until some evidence of the minimal effect shows through.

[aishah] 26/11/2015 09:19

Savage price Downgrade by Deutsche today - target price reduced to 267p from 330p and rating to HOLD

[paleje] 26/11/2015 07:55

Comments by Anthony Jenkins in todays Telegraph recognising threat of newcomer banks becoming household names.

[paleje] 25/11/2015 15:26

From Morning Star this afternoon, it's unwelcome but how much will it really affect profits:-

Housebuilders were still trading higher after Osborne's statement with Taylor Wimpey PLC up 2.4%, Persimmon PLC up 2.5% and Barratt Developments PLC up 2.2%, though the gains were pared back by the plans announced to introduce a new 3.0% stamp duty levy on buy-to-let purchases in the UK and second home buyers.

That new levy bruised shares in mid-cap buy-to-let lenders Wednesday afternoon, with OneSavings Bank PLC down 7.9%, Aldermore Group PLC falling 4.7% and Paragon Group of Companies PLC down 4.1%.

- See more at:

[davr0s] 25/11/2015 14:47

Hope no one got stopped out of this today on that fall. Good recovery now

[reddave999] 25/11/2015 14:08

Panic over, just one or two nervous nellies.

[paleje] 25/11/2015 14:07

Orchestrated I'd say, wonderful if you're in the orchestra.

[gorilla36] 25/11/2015 14:00

Isn't that wonderful !

[paleje] 25/11/2015 13:58

Dunno but the chairman's buy isn't looking too clever, nor mine unfortunately, double or quits?

[davr0s] 25/11/2015 13:56

3% stamp duty on btl just announced

[reddave999] 25/11/2015 13:55

Whats the problem here?

[zho] 25/11/2015 09:49

The Treasury has agreed to meet with Britain’s challenger banks at least four times a year, as George Osborne attempts to defuse a row over financial taxes ahead of his Autumn Statement on Wednesday.

[zho] 24/11/2015 10:04

George Osborne answering Treasury Committee questions on challenger banks:

[davr0s] 23/11/2015 19:07

Yep and bounced nicely off the 250 support level - stopped the rot for the time being

[paleje] 23/11/2015 17:18

Chairman's purchase today seems to have taken the jitters out of the share price

[clarea] 20/11/2015 20:31

I do hold but worry that news leaks out ahead with this share it dropped a couple of days prior to the tax on profits announcement in the last budget so someone knew it was coming.

[mazarin] 20/11/2015 17:10

According to ALD Investor's page, we finally closed down 2.17% at 256.6p today, thanks to last minute rally for details, see
OSB closed down 1.62% (-6.3p) SHAW was up 0.63% (2.1p) and VM up was also 0.42% (1.5p)
ADVFN's graph data is not always accurate at this level