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Are Mortgage Lenders Still Lending Through The Coronavirus?

Will mortgage lenders still lend money through the coronavirus?

With the weekend upon us, there has been no break in updates from the mortgage lenders! The coronavirus really has made an impact, that’s for sure.

Lenders are being inundated with customer enquiries around payment holidays is really putting a strain on their capacity to deal with new business, and this is evident. It doesn’t help that there are minimal staffing levels and surveyors are not able to carry out physical valuations.

Different lenders have dealt with this in different ways but they are all still very keen to stress that these are temporary measures and normal service will reassume after the coronavirus is under some form of control.

So here it is, the mortgage lender updates.


Lenders who have paused accepting new mortgage applications:

  • Principality Building Society are not currently accepting new build applications on either Residential or Buy to Let
  • Santander are not currently accepting applications for New Build properties or applications for Government schemes including Help to Buy, Shared Ownership, Right to Buy
  • Santander are not currently accepting any Buy to Let applications
  • Clydesdale Bank have temporarily suspended all new Residential Purchase applications and all Buy to Let applications
  • Dudley Building Society have withdrawn their entire Residential and Buy to Let mortgage range for new applications with immediate effect. This includes pre-agreed DIPs. They will honour existing mortgage offers
  • Mansfield Building Society have temporarily suspended lending on Holiday Lets



Lenders who have put in place occupation or status restrictions:

  • Leek United Building Society are not currently accepting applications for flats and new build properties and have restricted their maximum loan amount to £500,000 in addition to the LTV changes they made yesterday
  • Principality Building Society have removed all of their affordable lending range which includes our Help to Buy, Shared Ownership and Shared Equity products

    • Barclays have from today prioritised their purchase completions and, as such, some remortgage completions that were due on Friday 27th March will be delayed until next week

  • Leeds Building Society with immediate effect will no longer consider any variable income for PAYE customers, for example overtime, bonus or shift allowance, whether guaranteed or regular. They will still continue to accept 100% of large town / London allowance and car allowance as before
  • Kensington have today removed their Property Plus Range which previously facilitated lending on certain types of non-standard construction and some types of flats.



    • LTV Restrictions as of 27th March

    Residential

    • Barclays have reduced their maximum LTV to 60%
    • Clydesdale Bank have reduced their maximum LTV to 60% on remortgages
    • Coventry for Intermediaries have reduced their maximum LTV to 65% on all Residential lending including Further Advances
    • Mansfield Building Society have reduced their maximum LTV to 80%
    • Norton Home Loans have reduced their maximum LTV to 60%
    • Principality Building Society have reduced their maximum LTV to 80%
    • Santander have reduced their maximum LTV to 75% on both purchase and remortgages (Product Transfers are unaffected)

    Buy To Let

    • Barclays have reduced their maximum LTV to 60%
    • Coventry for Intermediaries have reduced their maximum LTV to 65% on all Buy to Let lending including Further Advances
    • Mansfield Building Society have reduced their maximum LTV to 65%

    I think it will be difficult times for everyone, but we’re all in this together. As I am updating this information, new email updates are coming in so please contact me if you have any questions or would like my help, why not book 15 minutes with me? Get in touch!

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