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Landlords 'hit by B&B nationalisation'

Tuesday, October 07, 2008

Source: Catherine Deshayes

The nationalisation of specialist mortgage provider Bradford & Bingley (B&B) has prompted a number of other lenders to withdraw their buy-to-let deals from the market, it has been revealed...

In a move that has left many landlords unable to secure finance, lenders UCB, Bristol and West and The Mortgage Works have all retracted their buy-to-let (BTL) rates.

Katie Tucker, Technical Manager for broker Mortgage Force, said that the downfall of B&B - the nation's biggest BTL lender - and the failure of US Congress to rescue financial institutions in the United States had left providers fearful of the risks.

"When big players fall back, others have to follow suit to avoid being swamped by the riskier mortgage applications," she said.

"This leaves little affordable choice for remortgages so thousands of buy-to-let landlords could reach the end of their introductory rates this coming year and find that their rent does not cover the mortgage payments on the lender's standard variable rate."

According to the Council of Mortgage Lenders, however, the BTL mortgage market continues to hold up well in the face of adversity, especially when viewed next to the residential market.

Source: www.houseladder.co.uk