Mortgage News Abbey Withdraws Buy To Let Mortgages 1433
Abbey withdraws buy to let mortgages
22 April 2008 / by Rachael Stiles
An Abbey spokesperson said: “We are still maintaining a BTL option although this is through the direct channel only. The temporary withdrawal in the intermediary channel is to ensure we maintain high service levels on our core residential lending.
“It also reflects the demand we expect to see going forward as the buy to let sector contracts. We must stress that this is likely to be temporary and we expect to relaunch into the BTL market with an attractive range and, importantly, an improved proposition when market conditions allow.”
A new range of Abbey mortgages has been launched which include no legal fees, booking fees, or valuation fees – the new deals on offer include a two year fixed rate, five year fixed rate and a two year tracker mortgage.
Like all other lenders, Abbey has ceased to offer 100 per cent mortgages, and a deposit of at least five if not 10 per cent is now required for all of its mortgages, except buy to let, which require at least 15 per cent as a deposit.
Customers with 20 per cent or more to put down as a deposit are rewarded with more competitive interest rates.
Abbey’s decision to withdraw products from its buy to let range reflects the continuing market conditions and are in line with the rest of the industry as lenders monitor the market and wait for liquidity to improve.
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