No plans for Bradford & Bingley to cut Mortgage Rates

24/04/2008

Bradford and Bingley, the UK’s largest buy-to-let lender has announced that despite news from the Bank of England yesterday to inject £50 billion liquidity into the housing market, it still had no plans to cut its interest rates.

Customers will find this a little disappointing as this is yet another blow to the UK Mortgage situation. In addition to this, the lender plans to be more stringent with who it lends to with plans to cut back on those who have a poor credit rating.
Bradford and Bingley said earlier today that the credit markets "remain uneconomic for mortgage lenders", as it made no reference to the Bank’s future plans.

"We have repriced our mortgage products in recent weeks which has widened new business margins considerably, more than compensating for the higher cost of funds on these most recent loans. The impact should start to offset the dilution in the second half of the year." Said Bradford and Bingley.

The bank said: "To enhance business quality, we have increased credit requirements and selectively lowered maximum loan-to-value levels." It has spent the first few months this year looking at approving the lower level of customer’s mortgages on purpose in order to regulate volumes