According to Moneyfacts.co.uk, the number of buy-to-let mortgages on the market had fallen by 63% since the start of the credit squeeze, dropping from 2,990 in April last year to 1,116.
Following on, the Bank of Scotland has withdrawn part of its buy-to-let mortgage range due to mounting pressure from the added business of other lenders who have left the market.
HBOS has dropped five of its buy-to-let mortgages and 10 of its self-certifying mortgages in order to restore some balance.
Record volumes of mortgage applications have also forced the Royal Bank of Scotland and Natwest to increase the minimum size of deposits that landlords must pay. The figure rose from 15% to 25% of a property’s value. This was proposed as a defensive measure to protect the service in the midst of mounting mortgage applications.