Platform derails mortgage lending for buy to let

Buy to let lender Platform Mortgages has signalled a lack of confidence in the market by more or less stopping borrowing for landlords.

Meanwhile, another buy to let specialist – CHL Mortgages – has announced trading improvements as more landlords slash mortgage arrears.

Platform, a subsidiary of the Co-op Bank has stopped lending to professional, self-employed landlords, reluctant landlords and property developers.

The firm is also tightening up terms for borrowers by restricting buy to let loans they can have with all lenders to five, of which only three up to a total of £1 million can be with Platform.

The move seems to be withdrawing support for professional landlords with portfolios of six or more properties worth in excess of £1 million.

Lloyds Bank similarly restricted buy to let lending in September, whereas professional landlord lender Paragon Mortgages returned to the market after a two-year absence in October.

CHL has reported arrears are falling rapidly for loans on its books – down 22% from their height in February 2009, and on track to fall 40%.

The lender also expects the trend to continue in to 2011.