A number of buy-to-let mortgage lenders scaled back their exposure to risk on Tuesday, cutting maximum loan amounts on new-build properties and withdrawing many competitive rates.

Bank of Scotland, BM Solutions and The Mortgage Business, all part of the HBOS group, reduced the maximum loan-to-value they will offer on new-build rental flats and apartments, including newly converted properties, from 85 per cent to 75 per cent. They also removed many of their best fixed and tracker mortgage deals.