Knowledge Bank Daily Criteria Update 21/05/2020

What a day! The sun shone..…we found out that Captain Tom Moore is to be knighted for raising over £32m for NHS charities……and 90% LTV’s are back in the house!!

You definitely won’t want to miss today’s update from Team KB…….

Lenders who have paused accepting new mortgage applications:

  • None

Lenders who have reinstated lending:

  • Accord¬†Mortgages¬†have from reinstated lending on New Build Purchases up to 85% LTV and on Help to Buy up to 75% LTV however this currently excludes Northern Ireland but that is being looked at
  • The Mortgage Lender (TML)¬†have resumed lending on HMO‚Äôs and Multi Unit Blocks

Changes to income and affordability restrictions:

  • Melton Building Society (MBS Lending)¬†have increased their maximum income multiple to 5 x single or joint income. Help to Buy remains capped at 4.5 x income in line with scheme rules

Changes to occupation restrictions:

  • None

Valuations

Physical Valuation Updates and associated criteria

  • Accord Mortgages¬†have resumed physical valuations in England only
  • Aldermore¬†have said today that they will resume physical valuations on Residential properties in England and that Buy to Lets will follow
  • Bank of Ireland for Intermediaries¬†have resumed physical valuations in England but desktop valuations will continue in other parts of the UK, including Northern Ireland, for Residential properties up to 85% LTV and for Buy to Lets up to 75% LTV for the time being
  • Clydesdale Bank¬†are resuming physical valuations in England from next week and will use a combination of both physical valuations and desktop valuations where appropriate for new business
  • Mansfield Building Society¬†have reinstated physical valuations in England
  • Metro Bank¬†have announced today that they are recommencing physical valuations in England and that they will be working through their pipeline¬†as quickly as possible
  • Newcastle Building Society¬†are recommencing physical valuations in England on Residential Purchases and Remortgages, New Build and Self Build from Thursday 21st¬†May but Buy to Let will continue to be done by desktop valuations at this time. They will be working through their Residential pipeline in chronological¬†order
  • The Mortgage Lender (TML)¬†have announced that they are resuming physical valuations in England

Desktop Valuations

  • None

Property Restrictions Imposed

  • None

Property Restrictions Lifted

  • None

Loan Sizes

  • Melton Building Society (MBS Lending)¬†have increased their loan sizes as follows:
    • Up to 75% LTV – ¬£1m
    • >75% – 80% LTV – ¬£500,000
    • >80% – 90% LTV – ¬£400,000
    • >90% – 95% LTV – ¬£300,000

Property Values

  • None

LTV Reductions

Residential

  • None

Buy to Let

  • None

LTV Increases

Residential

  • Accord¬†Mortgages¬†have increased their LTVs on both Purchase and Remortgages as follows:
    • 90% LTV up to a maximum loan of ¬£500,000
    • 85% LTV up to a maximum loan of ¬£1m
    • 75% LTV up to a maximum loan of ¬£1.5m
  • Clydesdale Bank¬†have confirmed that they will return to 90% LTV from next week
  • Virgin Money¬†will go back up to 90% LTV from next week

Buy to Let

  • Clydesdale Bank¬†will increase their LTV up to 80% from next week
  • Virgin Money¬†are increasing their LTV back up to 80% from next week

Product Transfers

  • None

Industry News
We heard from UK Finance today that The Financial Conduct Authority (FCA) have been meeting with banks to discuss what support measures should be put in place ready for the end of the Covid-19 mortgage payment holidays. One in seven mortgages are now on a payment holiday as a result of the coronavirus pandemic and both lenders and the FCA are keen to ensure that the correct levels of support are in place for borrowers who are struggling to meet their payments due to the crisis. The majority of the mortgage payment holidays are due to end in June but as yet no decision has been made with regards to continued support. We expect to hear an announcement relatively soon so of course we will bring you the detail as soon as we hear.

In some cases, there have been additional restrictions placed on things like loan sizes and property values to enable the lender to do Desktop Valuations. You‚Äôll find these have been amended by the lenders in the relevant criteria categories on Knowledge Bank. There are also the ‚Äúlender announcements‚ÄĚ under the lender‚Äôs logos in the search results to alert you to anything you need to be aware of before placing the case. To see these features and much more,¬†log in to Knowledge Bank¬†here.

Our Lender Relationship Manager, Matthew Corker comments:

“Virgin Money and Clydesdale Bank have told us that they will be bringing out a new range of products next week and that in addition to seeing the increase in the LTV’s, they will also be returning to their previous maximum loan sizes and property values which is great news all round.

Aldermore have resumed physical valuations on Residential Purchase and Remortgages but are holding back at the minute on Buy to Lets. They are planning on re-introducing these soon but they aren’t currently satisfied that they can value HMO’s and larger rental properties safely until social distancing restrictions are eased.

Newcastle Building Society have told us that they are launching a revised range of Interest Only products tomorrow, Thursday 21st May, along with a new range of Remortgage products. They will go up to 75% LTV on Interest Only and will allow an additional 5% LTV to be added on a Repayment basis whilst affordability is calculated on the Interest Only basis. Their maximum age for borrowers at the end of the term is 80, so a great offering from them.

And finally, today we welcomed¬†Hampshire Trust Bank¬†onto Knowledge Bank. The have some great criteria in the specialist Buy to Let and Bridging sectors so well worth checking them out in The Bank section of the system where you can view a lender‚Äôs criteria in its entirety. It‚Äôs a great area of the system to do a quick check on a particular piece of criteria or have a browse through to familiarise yourself with individual lenders.”