Mar

LATEST: Lender exodus from buy-to-let mortgage market in full swing Teaser

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Research by a leading mortgage brokers reveals both small, medium and large lenders suspending or severely reducing their buy-to-let mortgage ranges.

Lenders are pulling the plug on mortgage applications and reducing
their buy-to-let product ranges, leaving landlords struggling to find deals.

Online buy-to-let mortgage broker Property Master warns that the buy-to-let
mortgage market is going into reverse as the impact of the Coronavirus begins
to bite, with some lenders even quitting
the market for the foreseeable future.

“Landlords are finding that their borrowing options are being
drastically reduced as lenders respond to this new record low base rate
environment and fears of falling house prices by withdrawing entire product
ranges,” says chief executive Angus Stewart.

Products withdrawn

“We have had clients mid-way through a mortgage application only
to find the process is halted and the product withdrawn before they can reach
completion and the release of funds.”

It reports that Saffron Building Society, which offered a range of
mortgages including for portfolio and limited company landlords, now has no
products available, while The Melton Mowbray Building Society and Vida
have followed suit.

Together Money has suspended lending in both the buy-to-let and
residential market, and Barclays has withdrawn all its products for portfolio
landlords.

The Mortgage Works and HSBC have both withdrawn their tracker
mortgages for the foreseeable future, while other lenders are tightening
criteria; Kensington Mortgages, for example, has
reduced maximum loan to value lending criteria down from 85% to 75%. Some
lenders have increased rates despite the 0.65% fall in base rate.

Stewart adds: “We would urge lenders to continue to support
landlord customers, especially those who were moving successfully through the
mortgage application process and would otherwise have expected to be shortly in
receipt of a loan.

Similarly, we would urge banks to stand by the
commitment made by the Government to provide payment holidays to landlord
customers.”

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