Bradford & Bingley has slashed its lending to landlords, amid claims that the troubled bank is struggling to make profits on its new loans.
Britain’s biggest buy-to-let lender, with a £23bn book of loans, has pulled its Mortgage Express range from Moneyfacts, the financial website that is used by potential borrowers to compare interest rates.
A B&B spokeswoman said that the loans were still available from a select group of mortgage brokers. 'More than 90 per cent of intermediaries can still deal with us,' she said. 'This is just so we can better manage our distribution model. It’s about managing volume flow and improving credit quality.'
However, a mortgage broker with access to Mortgage Express products said that interest rates on the mortgages had risen sharply. 'It’s been increasingly evident in the past few weeks that they’re trying to price themselves out of customers’ range. They don’t compare well with any other provider,' the broker said.