Investment Property News - Bueno Investments Limited

A number of smaller building societies have had to restrict their levels of lending after they were inundated with trade as an effect of the credit crunch, it has emerged.

Five building societies have said they will now only lend to people who live in their local area, while a further two, including the UK's fifth biggest mutual Chelsea Building Society, have decided not to accept business through intermediaries.

Last week two companies - Bath Building Society and Earl Shilton Building Society - both withdrew all products from the market, except standard variable deals.

A further seven small lenders have changed their lending criteria within the last two weeks, with most cutting the maximum proportion of a property's value they are prepared to lend on, in some cases to just 60%.

Large mortgage lenders have raised rates and tightened lending rules amid higher borrowing costs but smaller lenders, who fund their mortgage book through deposits, had escaped the credit crisis relatively unscathed until now.

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http://www.buenoinvestments.com/uk_property_investment.php (UK property)

http://www.thechelsea.co.uk (Chelsea Building Society)