Several specialist BTL finance lenders have withdrawn BTL products.
Aldermore is pulling all BTL mortgage products from 6pm today (Friday 26 May).
A spokesperson for the bank said: “Due to wider market conditions, and in line with other lenders, we’re temporarily withdrawing mortgages for new customers.
"We hope to be back in the market in the near future.”
Foundation Home Loans is removing all of its BTL special products — all DIPs will need to be submitted by the end of today and FMAs will need to be submitted by close of business on Thursday 1st June.
It will have no products available from 5:30pm today until Wednesday 31st May.
Fleet Mortgages has also pulled its fixed-rate products but is still offering tracker rates.
Amit Patel, adviser at Trinity Finance, said: “Lenders have had to react due to market conditions and protect their position as responsible lenders.
“This creates a headache for brokers as we have to react quickly to secure a rate before the plug is pulled.
“This can be tricky if you are still awaiting the client to send you documents to support an application.
Rob Gill, MD at Altura Mortgage Finance, added: “We appear to be entering a credit crunch affecting smaller, specialist lenders with several withdrawing products citing volatility to credit markets after Tuesday's inflation figures.
“For the time being at least the impact is restricted to a handful of smaller lenders, although brokers and borrowers alike are keeping a close eye on the wider market for any signs of contagion.”
