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Barclays withdraws all portfolio buy-to-let products

With the coronavirus pandemic continuing to escalate, Barclays has announced that it is withdrawing all portfolio buy-to-let products and is no longer accepting new applications.

The bank has closed two underwriting sites, owed in part to the outbreak of COVID-19, and this in turn has limited the number of applications it is currently accepting. 

Barclays issued the following message to brokers: “These withdrawals are in addition to the measures communicated earlier to further help us manage the inbound flow of applications following the closure of two of our offshore underwriting sites over the past weekend.


“We are withdrawing all portfolio landlord products and regret that we are no longer accepting these applications at the present time.

“We expect to launch a fresh range of products shortly and we apologise for any inconvenience this causes in the interim."


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    They don't want the risk as tenants take a rent holiday and landlords have no income. When the mortgage is in default what is the point of repossession as there's no market to sell the property to recoup the debt.

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    • 26 March 2020 09:45 AM

    Well I'm betting there will be a radical shakeup in the BTL mortgage market.

    To increase resilience for the future when another similar thing as CV19 could easily occur I believe lenders will reduce LTV to 50% maximum.

    They could even withdraw IO BTL mortgage products to C&R ones.
    You couldn't really blame lenders if they behave this way.

    LL would do well to lock into long term remortgage products as they will be pulled very soon.

    The requirement for far larger deposits will have a massive effect on the PRS.
    It should be OK for existing LL as far as increased rents would be concerned due to lack of supply.

    But with far fewer properties able to be bought for a given amount of capital potentially prices will soften considerably.

    It has been existing BTL LTV values that have facilitated the growth of the PRS to where it is today.
    Lenders will be running scared.
    So as a maximum I can see LTV being reduced to 50%..
    This so if repossessions occur the bank should be able to sell even into a distressed market.

    It will be for the LL to take the total loss of all equity.

    I wonder if the requirement to have considerably more 'skin in the game' will deter many new LL?
    It would also restrict existing LL from expanding their business if they have to find additional capital for new mortgage products.

    The appetite for more BTL risk I believe will be considerably reduced.
    I consider that lenders will make far more effort to attract homeowners.

    The golden age of BTL I think has come to an end.


    Only the fittest will survive this, those that borrowed too much trying to run before they could walk will hit the buffers

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    We need bigger deposits all round - for buyers and for renters - then there is something to fall back on for everyone.


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