Buy-to-let product choice obliterated

85% of buy-to-let products were stripped from the market this year, reveals Moneyfacts.co.uk.

The market as a whole saw 11.4% of mortgage products wiped out bringing numbers from 3,914 Monday morning to 3,469 today.

The residential market was also hit hard losing 60% of its products in 24 hours.

Michelle Slade, analyst at Moneyfacts.co.uk, says: “Monday saw one of the largest declines in mortgage products ever seen in a day, with 11.4% of products being culled.

“B&B and MEX pulled their entire range, along with UCB and TMW, which have temporarily withdrawn their products due to unprecedented business volumes.

“Halifax, Bank of Scotland Mortgages, Bristol & West Mortgages, Intelligent Finance and Newcastle have also restricted the range of products that they now have on offer.”

She says the news will be a blow against borrowers meaning less availability in addition to rising rates as a result of money markets insecurity.

Slade adds: “Coupled with the liquidity problems in the markets, it may be that we see further increases with this phenomenon in other aspects of lending, such as loans and overdraft rates.

“It appears that lenders are slowly turning the tap off on the number of mortgage products available and their appetite to lend. If the problems continue we have to start asking the question, will the tap will be turned off completely until stable markets return?”