The Coventry Building Society is making changes to its LTV limits due to surveyors putting a hold on physical property inspections.
The changes will come into effect from 9am today (Friday 27 March).
Changes are as follows:
For flats – the maximum allowable LTV will be 50%.
For houses – no changes for applications up to 85% LTV, as the lender will be increasing its maximum allowable LTV for non-physical valuations to 85%. Applications with an LTV over 85% will be accepted and processed to the point of valuation, when they will be put on hold until a physical valuation can happen.
Purchases – applications for Buy to Let purchases will still be accepted. These applications will also be processed to the point of valuation and then kept on hold until a physical valuation can happen.
Remortgages – the Society will allow non-physical valuations for applications up to a maximum LTV of 75% for houses and 50% for flats.
The Society will use a non-physical valuation on all residential and buy-to-let pipeline cases regardless of LTV. This applies to all pipeline business submitted up to and including Thursday 26 March, where a valuation has not already taken place.