A further update regarding Coronavirus (COVID-19)
As the COVID-19 situation continues to develop, we want to re-assure you that we remain committed to support you and your clients over the coming weeks and months. To keep you, our Intermediary partners as up to date as possible with our approach to dealing with COVID-19 we have made the following changes to our lending policy:
Maximum Loan / Loan to Value
With immediate effect:
- We've amended our maximum loan and LTV for all new business applications as follows:
| Type | Maximum Loan | Maximum LTV |
| Standard residential | £0 - £750,000 £750,001 - £1,000,000 |
80% 75% |
| Large loan | £500,000 - £1,500,000 | 75% |
| Buy to let | £0 - £500,000 | 75% |
Valuation Policy
Whilst physical valuations are currently not possible we are utilising AVMs and Remote Valuations on the following basis to support customers:
| Valuation Type | Acceptable Loan Type | Maximum Loan | Maximum LTV | Maximum Property Value |
| AVMl | Remortgage | £500,000 | Up to 80% | £750,000 |
| Remote Valuation | Purchase & Remortgage | See max loan criteria above | Up to 80% | £2,000,000 |
Eligibility Criteria - remote valuations will be requested on applications that meet the following criteria:
- Owner occupied properties, purchase or remortgage up to 80% maximum LTV
- Buy to let properties, purchase or remortgage up to 75% maximum LTV
- Inside the M25 up to £2 million
- Outside the M25 up to £1 million
Exclusions - remote valuations will not be requested on the below for new and pipeline applications with the application placed on hold until a physical inspection is received prior to offer:
- Any application that doesn't meet the above criteria
- Property where there is a known structural defect or adverse environmental issue such as Japanese Knotweed
- Property in poor / derelict condition
- Properties defined as non-standard construction
- New Build properties
- Self-Build / Custom Build properties
For other properties that may fall outside of standard remote valuation criteria we reserve the right to obtain a physical valuation prior to completion. We will inform you and your client where this is the case.
Income Policy
We continue to support both employed and self-employed borrowers during this unprecedented time.
For employed customers who have been impacted by COVID-19 and may have been placed on furlough by their employer we are considering on the following basis:
- Details of furlough impact should be confirmed i.e. 80% of salary / how long for
- Evidence of being placed into the scheme should be sent to us via document upload
- We will reassess affordability to ensure that the loan remains affordable. If not, we will confirm maximum loan to enable brokers to decide whether to proceed or advise on extending term
For self-employed customers whose income may have been impacted we require details of the income they expect to receive from the self-employed income support scheme. Again, we may be required to reassess affordability.
Offer Validity Periods
Our standard purchase and remortgage offers remain valid for 3 months with exception of purchases where contracts have been exchanged. These are automatically extended by another 3 months in line with Government recommendations. All new build offers remain valid for 9 months.
Where exchange has not taken place, please ask the customer's conveyancer to contact us detailing the reasons why an extension is required to enable us to assess. Depending on the length of extension required (i.e. greater than 1 month) we do reserve the right to insist on obtaining additional information such as up to date proof of income or an up to date remote valuation (at cost to applicant).
Our team of BDMs will be more than happy to help with any questions or queries you may have. To find your local BDM please click here
Supporting our Existing Borrowers
We are committed to supporting customers and landlords who experience difficulty with mortgage payments as a result of COVID-19. This includes providing payment holidays up to 3 months.
For more information on payment holidays and how to apply, please click here
If your clients do need to speak to us then ask them to call our helpline number on 0345 702 3083. Lines are open from 9am to 5pm Monday to Friday.