Cheltenham & Gloucester has announced it will be cutting buy-to-let loan to values down from 85 per cent to 80 per cent.
It says notional rate for rental calculations will increase from 6.50 per cent to 7.25 per cent.
It will be withdrawing products from close of play today. In an email to brokers, it says: “We acknowledge this is a short notice period but it is essential to our service standards that we control business volumes.”
It adds: “With fewer lenders actively competing in the market we are seeing enormous demand for C&G mortgages.”
It has also made a number of other changes.
For loans under £50,000 it says it has made decisions simpler in both the Buy-to-Let and Mainstream ranges by creating a single range from £5,000.
It says it has “spruced up” its mainstream lending range with an extended set of 75 per cent LTV products and it has refreshed rates, including a reduced rate on its 90 per cent LTV term tracker.