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Buy to let is difference as C&G loan share sags while

Cheltenham & Gloucester has lost market share while lending at Bradford & Bingley continues to grow strongly as a result of the lenders&#39 differing attitudes to buy-to-let business.

Lloyds TSB&#39s trading update reveals that C&G&#39s market share of net new lending in the third quarter of this year has softened due to continued avoidance of the buy-to-let, sub-prime and

self-certification mortgage markets.

But B&B&#39s pre-close briefing reveals that new lending has been growing strongly while credit quality remains good across all its loan books. The figures up to June show that buy to let accounted for 35 per cent of its lending.

Brokers say the way for lenders to increase their market share is to do well in mainstream lending while also specialising in a niche area.

Mortgageforce managing director Rob Clifford says: “If a lender decides to remove itself from the very fruitful niche areas of buy to let and self-cert it will be left in the vanilla mainstream mortgage market and will have to compete with lenders like Abbey and HBOS.

Some might say that buy to let is actually performing better than residential – it is certainly a very big niche.”

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