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...
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