Three building societies pause mortgage business

Landlords currently can’t use Suffolk Building Society for buy-to-let, as the firm has stopped accepting mortgage applications after receiving more business than it can cope with.

This followed last week’s moves from Cambridge and Coventry building societies to pause applications, seemingly as landlords rushed to put in an application before the Bank of England hiked the base rate by 0.5% on 4 August.

Suffolk Building Society has extended the deadlines for submitting cases already in process. Decisions in principle can be submitted up to 5pm on Tuesday 9 August while full mortgage applications can be submitted by 5pm up to Tuesday 16 August.

The society blamed the pause on a “recent high volume of business” which has slowed down the society’s ability to process applications.

Last week Suffolk responded to the changing base rate by withdrawing some holiday let, expat buy-to-let and residential products, while it increased some rates by up to 0.5%.

Cambridge withdrew products last week, saying it had to do so “to ensure it was in the “best position to continue [accepting business]”. Similarly Coventry pledged to “fulfill and prioritise existing applications”.

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