Bradford & Bingley's announcement it has stopped selling competitors' mortgages through its 200-plus high street branches still makes business sense despite recent rises in the key base rate of interest, the lender says.
Its lender panel was warned earlier this year it intended to make the change, and says nothing has happened since to make it change its mind.
It claims an ongoing repossession figure of about 0.1% of its book of loans, also noting that repossessions do not necessarily translate into a loss.
Its own-branded buy-to-let offer now on the market applies a maximum LTV of 85%, with the average previously experienced of 76%. It will apply a rental cover requirement of 125%.
A spokesperson says the decision to drop the panel has not been undermined in any way by interest rate rises in the past few months, which have taken mortgage rates to five-year highs, and hit yields on BTL property.
Otherwise the own-label business will focus on self-certification and lifetime mortgages. The former is becoming increasingly important for lenders as working patterns change, B&B claims. It estimates there are some four million self-employed people in the UK already.
It has also reiterated the stance its intermediary business will remain in place. Back in May the commitment was for intermediary business to continue through the Mortgage Express brand.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards