Abbey withdraws from buy-to-let market

Abbey is to withdraw the majority of its buy-to-let mortgage range "temporarily", with a view to concentrating its efforts on residential lending.

From 22:00 this evening the lender – owned by Spanish bank Santander – will withdraw the majority of its range, Abbey announced in a statement.

Only a two-year tracker mortgage will remain on offer, currently priced at 6.15 per cent, with a maximum loan-to-value (LTV) of 75 per cent, in addition to a £999 fee.

"The temporary withdrawal in the intermediary channel is to ensure we maintain high service levels on our core residential lending," said Abbey in a statement.

"It also reflects the demand we expect to see going forward as the buy-to-let sector contracts."

The move follows a decision by Halifax last week to raise rates by 0.5 per cent.

At the same time the lender has added a further product to its residential offering.

In addition to its 90 and 95 per cent LTV products, Abbey will now offer a mortgage with a maximum 75 per cent LTV, with interest rates up to 0.25 cheaper for those with a larger deposit.