Mortgages Plc has withdrawn from the prime buy-to-let (BTL) market with immediate effect, it was announced today.
The firm says it will continue to process applications until close of business on 26 March.
The move suggests the credit quality for the BTL market - previously considered stable and relatively risk-free - is not as high as some commentators have argued.
Commenting on the decision, Polly Hughes, head of marketing at Mortgages Plc, says: “We have seen both an increase in the number of new buy to let applications and a deterioration in credit quality, as other lenders have tightened criteria and pulled out of the market.”
She says Mortgages Plc wishes to focus on residential lending, but will monitor the markets and review its position if credit conditions improve.
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