Challenger bank Aldermore has announced plans to slash fees and up procuration fees.

The lender has cut valuation fees and given a sizeable incentive to brokers by increasing procuration fees from 1 per cent to 1.75 per cent.

Valuation fees for customers have been cut by £500 for a limited time.

It is hoped that by doing so valuations on both residential and commercial investment properties can be made more cost effective.

The move has been praised by Aldermore MD of Mortgages and Commercial Lending Charles Haresnape who believes that Aldermore are bucking the trend.

He said: “While many traditional mortgage providers continue to show a reluctance to provide shorter term facilities, bridging can be an invaluable resource for those looking to secure finance quickly. Whether customers are looking to raise funds or need to renovate or develop properties, this flexible form of finance is becoming increasingly popular as a solution.   

“These latest changes make Aldermore an attractive provider for brokers and customers alike. These changes are testament to Aldermore’s commitment to the bridging market.”

The changes mean that based on the average property value of £240,000, residential customers will have valuation fees cut from £505 to just £5.

Customers purchasing commercial property will now pay just £310 instead of £810.