Some positive news from us this morning. We have loosened our criteria and taken a step back towards where we were before lockdown.
An overview of the changes:
BTLs:
- An increase in our maximum LTV to 70% on residential purchases where the borrower is a UK national with other BTLs.
- If it is a refinance and/or the borrower isn’t a UK national with other BTLs – we can still go to 70% LTV but only without any deferred interest.
– Note – the above is applicable to our new BTL products that I went through a couple of weeks ago!
Bridging:
- An increase in our maximum LTV to 70% on residential purchases where the borrower is a UK national with other BTLs.
- An increase in our maximum LTV to 65% on commercial purchases of industrial units/warehouses.
Refurbs:
- An increase in our maximum day one LTV to 70% NET on refurb loans – providing the LTGDV doesn’t exceed 65%.
- Remember that in addition to this day one loan we also fund 100% of the cost of the works.
- For the time being we’re still only funding projects where the cost of works doesn’t exceed 50% of the day one value.
Note: these are our maximum levels and this does not mean we can apply them to all cases.
If you have a recent AIP from us that is still alive – and you think a slight increase in leverage would help win the deal – please do let me know.
We have been lending throughout the entirety of this difficult period and we still have a genuine appetite to lend across our entire range – bridging, developer exits, refurbs and BTL.
Lending Guide can be downloaded here.
I will continue to keep you updated as we take further steps back to our norm.
Kind regards,
Josh