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Have Mortgage Lenders Restricted Borrowing During Coronavirus?

Ethical Home Insurance

What will happen to mortgages during the Coronavirus?

I appreciate that in these challenging times that you need the information to hand so that you have a clear picture of the mortgage market and what will happen during the Coronavirus.

Every day I will do my utmost to keep you updated with the mortgage market during the coronavirus.

I hope you find this information useful and as always, if there is any way that I can support you further, please don’t hesitate to get in touch. Ways to contact me can be found here

As the market is changing almost by the second, I haven’t been able to include every change in today’s update. Therefore, I recommend that you check back at least daily to view the latest information on the mortgage market.

Slowly but surely the mortgage market is grinding to a halt. Builders have stop building. With the new rules around social distancing, valuers are no longer entering people’s homes. Some lenders have closed their doors to a new business entirely, where others have restricted their LTVs (Loan to Value. The amount of borrowing versus a property value).

But it is not all doom and gloom!
Lenders are starting to accept applications that they know they are able to progress through to offer using an AVM/desktop valuation (without the need for a physical inspection). This doesn’t help the purchase market, but for remortgages, it will at least keep some momentum.

There are many reasons why lenders are doing this but one of the more practical reasons is that their staffing numbers are depleted already due to those social isolating but in addition to this, they are having to redeploy their teams to manage the overwhelming number of enquiries that they are getting from existing customers around their payment holidays.

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Mortgage market changes during Coronavirus

Residential

  • Barclays have reduced their maximum LTV to 60%
  • Foundation have reduced their maximum LTV to 80%
  • Kensington have removed all of their 95% LTV Products
  • Kensington have reduced their maximum loan to £500,000 across their standard range
  • The Melton have reduced their maximum LTV to 85%
  • Progressive Building Society have removed all of their 85% LTV Products
  • Together have paused accepting new mortgage applications
  • Vida Homeloans have paused accepting new mortgage applications
  • West Brom have paused accepting new mortgage applications

 

Buy to Let Mortgages

  • Barclays have reduced their maximum LTV to 60%
  • Barclays have removed all of their Portfolio Landlord range
  • Fleet have reduced their maximum LTV to 60%
  • Foundation Home Loans have reduced their maximum LTV to 80%
  • Landbay have reduced their maximum LTV to 75%
  • Pepper Money have increased their minimum income requirement to £30,000
  • Saffron have paused accepting new mortgage applications
  • Together have paused accepting new mortgage applications
  • Vida Homeloans have paused accepting new mortgage applications
  • West One have paused accepting new mortgage applications
  • Zephyr Homeloans have reduced their maximum LTV to 60%
  • Zephyr Homeloans have reduced their maximum loan to £1m



You are going to be okay! Behind every lender, is a human being and there is empathy. We are all in this together and lenders will work with you to help build a more stable future.
If you have any questions or would like my help, why not book 15 minutes with me? Get in touch!

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