Lenders step back from buy-to-let

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Saffron Building Society has pulled its buy-to-let product range, instead switching its focus to first-time buyers.

Meanwhile Vida Homeloans has hiked its 2 and 5-year fixed rate buy-to-let products across its ‘Vida 1 and Vida 2’ ranges by 0.50% – in a step likely designed to reduce the amount of business it will receive. The Vida 3 and Vida 4 products have been left unchanged.

Neither lender directly referenced the influence of the COVID-19 outbreak when making the respective decisions.

A Saffron Building Society spokeswoman said: “The buy-to-let products were successful at the start of the year but we’ve decided to change our approach to focus on first-time buyers.

“We fully intend to go back into the market by the end of the year, but we’re focusing on our core range at the moment.”

A Vida Homeloans spokesman said: “Vida Homeloans remains committed to working with our intermediary partners to serve the buy-to-let and specialist residential markets and we continue to review our rates on an ongoing basis.”

Payam Azadi, director of specialist broker Niche Advice, said: “As mortgage brokers we want choice and we’ve been great supporters of independent lenders for shaking up the buy-to-let and specialist sector.

“We are at the danger point right now and hopefully these lenders have got secure long-term funding channels.”

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Written by: Houseladder



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