The Mansfield Building Society has become the latest lender to take steps to tighten its criteria as the impact of government restrictions necessary to tackle the coronavirus start to affect individuals and businesses across the UK.
With immediate effect, the Society has limited lending to 80% loan to value (LTV) across its range of residential mortgage products and imposed restrictions on all new buy-to-let business, including the temporary suspension of lending on holiday lets and reducing the maximum LTV on buy-to-lets to 65%.
The lender is keen to remind brokers that lending to 80% LTV is still subject to valuation which continues to be hampered by the strict rules imposed by the government this week.
In light of these restrictions, the society is allowing the use of AVMs (Automated Valuation Models). The use of AVMs has been adopted by the Society to help provide a limited but sustainable service until the wide range of government initiatives kicks-in, and the full impact of COVID-19 is known.
Although the use of AVMs is limited to residential remortgages to 65% LTV, the lender is keen to support brokers and their clients until valuers are once again allowed back out on the road to undertake physical inspections in due course.
Paul Lewis (pictured), national development manager at the Mansfield, said: “We’ve developed some terrific broker relationships that we’re keen to continue to support throughout the ongoing crisis but as you’d expect, we’ve had to temper our product range accordingly.
“We hope that the government’s strict measures introduced this week start to make a real impact on the Coronavirus pandemic, and that the product and criteria changes imposed will soon be relaxed.
“In the meantime, I would encourage brokers with new business enquiries or general concerns to contact either myself or the Intermediary Support team – we’re here to help wherever we can.”