The lender sited the Budget laying out better options for FTB as one of the factors in its decision to focus on this marketplace.

Mike Brown director at Crystal Clear Financial Services, said: “This is a real shame as the Saffron Building Society’s proposition had a great opportunity on 5-year fixed rates where the pay-rate could be used, making it a strong proposition.

“We need more lenders in the BTL space, rather than less, so losing a good lender from this market is disappointing”

Martin Stewart founder and director of London Money, added: “Brokers need to understand that we are right back where we were in 2008. The Coronavirus is one thing but underneath that is the formation of another credit crunch as liquidity begins to dry up.

“I wouldn’t be too worried about watching what the lender product teams are doing. Instead I’d be watching the words and actions of the wholesale markets, the swaps rates, the stockmarkets and what the central banks are doing.”

More to follow…