Gatehouse Bank is reducing its maximum finance to value (FTV) on its buy-to-let and Home Purchase Plan products to 65%.
This is due to difficulties in gaining standard valuations because of the current social-distancing taking place in the UK in response to the Coronavirus risk.
The bank will be switching to desktop valuations in order to continue to provide home finance for homebuyers and landlords.
In addition, due to the limitations of desktop valuations, the bank is also temporarily unable to finance Houses in Multiple Occupations (HMOs), Multi Unit Freehold Blocks (MUFBs), new builds and apartment buildings with more than six storeys.
While the bank will not accept new applications for financing of above 65% FTV from the end of today, it has committed to proceed with existing applications, once standard valuations are available.
The previous maximum FTVs for the bank’s HPP products stood at 80% for UK residents and UK expats, and 75% for international residents. Across its buy-to-let range, the max FTV had stood at 80% for UK residents, UK expats and international residents.
The initial rental rates for all products at 65% FTV remain unchanged.
Gatehouse is also supporting existing customers who are facing difficulties during these unprecedented times, offering a payment holiday of up to three months to homebuyers and landlords.
Charles Haresnape, CEO at Gatehouse bank said: “These are clearly challenging times, as it is not possible for standard valuations to be carried out, due to social-distancing. We have had to make changes to our products in order to continue to support homebuyers and landlords. We hope these changes will only need to be in place for a short period of time and plan to broaden our proposition, as soon as it is possible to access standard valuations.
“We will also be contacting customers who have recently applied for finance above 65% FTV and have not had a valuation carried out, to make them aware of our decision and advise them that we would be happy to proceed as soon as standard valuation is possible.
“We are working hard to provide our existing customers with support during these uncertain times. In line with other providers, we are helping customers that are facing financial difficulties, assessing their needs to find a suitable payment strategy and providing a payment holiday of up to three months if required.”