Abbey stop buy-to-let mortgages

22/04/2008

Abbey have put a stop on selling buy-to-let mortgages. The high street lender has decided to stop this revenue simply because they are thinking of concentrating on their residential business sector.

Lending criteria for homeowners changed, a deposit worth at least 25 per cent of ones property value must be deposited to qualify for Abbey's cheapest mortgage deals.

Director of Savills, Melanie Bien commented: "If this is only a temporary move, 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."

Bristol & West, also decided to increase the cost of mortgage deals for landlords today from 6.19 per cent to 6.49 per cent.

A vast majority of lenders have all steadily been increasing mortgage rates, but specialist buy-to-let lenders are more exposed to the money sectors than general banks and building societies.

Jonathan Moore a spokesman commented: "We have enjoyed a period of significantly cheap money and there now appears to have been a correction in pricing that investors must learn to appreciate."

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