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News: Another bank banishes BTL

Wed, 23 Apr 08

Another leading bank has pulled the plug on its range of buy-to-let mortgages...

Abbey has become the latest lender to withdraw mortgage products with the news that it will no longer be offering a raft of its buy to let mortgages. A spokesperson for the lender explained: “Buy to let loans are being pulled from the market on a temporary basis, which will allow us to focus on our residential mortgage lending business.

“We will also be imposing stricter lending rules on residential mortgages, and will from here on in be requiring deposits of 25 per cent in order for customers to access the best deals”.

Melanie Bien, director of Savills Private Finance, told the Times: "Even if this is only a temporary move [by Abbey], fewer products on the market makes it difficult for landlords coming up to remortgage or looking for a new deal, and puts further pressure on those lenders who are still in the market. In the short term at least, rates may well continue to edge higher."

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