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Lenders say they won’t follow Nationwide in buy-to-let remortgage move

Lenders say they have no plans to restrict their buy-to-let criteria after Nationwide decided to stop accepting remortgage applications to fund buy-to-let investment.

Money Marketing revealed the move by Nationwide last week, which the mutual said was part of its move to a single mortgage processing system.

Brokers have hit out at what they say is a contradictory move, as Nationwide’s buy-to-let arm The Mortgage Works will accept remortgage applications to fund buy-to-let, but not from Nationwide customers.

Lenders say they have no plans to restrict their buy-to-let lending criteria in the wake of Nationwide’s decision.

Santander for Intermediaries managing director Brad Fordham says: “Growing our buy-to-let business is a key focus for us this year and we continue to accept both purchase and remortgage applications for buy-to-let properties. We are definitely open for business.”

Leeds Building Society general manager Martin Richardson says: “Leeds will accept remortgages where the customer is raising funds to use as a deposit for a buy-to-let property.”

Barclays and Coventry Building Society also say they have no plans to change their buy-to-let criteria.

London & Country associate director of communications David Hollingworth says: “Nationwide may have adopted this policy due to it viewing buy-to-let as a business investment, and the restrictions on capital raising through remortgages for business purposes. That said, it would be surprising to see a rush of lenders taking the same view.”

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