Mortgage Market Movements

27/03/2020

Coventry have confirmed that purchase and remortgage cases remain as business as usual for applications up to 85%. They are increasing their maximum allowable LTV for AVM/remote valuations to 85%.

Skipton have suspended new purchase, Residential and Buy to Let mortgage lending and all Buy to Let and Residential remortgages will be limited to a maximum of 75% LTV.

Lenders who have paused accepting new mortgage applications:

  • The Mortgage Lender (TML) on just Residential (Buy to Let remains unaffected) 
  • Pepper Money are still accepting new applications still BUT as they don’t accept AVM’s, desktop or drive-by valuations, all applications will be put on hold for the next 3 weeks awaiting further guidance from the government around movement  
  • Clydesdale

Lenders who have put in place occupation or status restrictions:

  • United Trust Bank are no longer accepting applications from those in Leisure, Travel, Hospitality or Retail Sectors on Second Charges
  • LendInvest are no longer accepting applications from First Time Landlords

Residential

  • Family Building Society have reduced their maximum LTV to 60% 
  • Leek United Building Society have reduced their maximum LTV to 80% 
  • Octane Capital have reduced their maximum LTV to 65%

Buy To Let

  • Leek United Building Society have reduced their maximum LTV to 65% 
  • LendInvest have reduced their maximum LTV to 75%

HSBC released the following statements;

  • No physical valuations in customers’ homes will now be conducted. Our valuation partners are only able to complete desktop valuations at this time.
  • If a customer is still wanting to complete a mortgage application for a new home purchase, re-mortgage or Home Owner Loan, this process will now take longer than usual where a physical valuation is required, in line with government guidance.
  • If a customer is in the process of buying a new home and they are in a chain, these current restrictions could affect their ability to complete, even if we are able to complete a desktop valuation for their application This may be because another party in their chain is unable to proceed right now or that the move is not in line with government guidelines.

They are offering additional support at this time on, 0800 169 6333 (Monday to Friday 8am-9pm, Saturday 8am-8pm, Sunday 9am-6pm) and choose ‘Option 0’, which is a dedicated COVID-19 mortgage query line.

Virgin Money have suspended new purchase application as a result of not carrying out valuations. They are carrying out AVM’s and desktop valuations where possible for remortgage business. Any existing applications are being looked at on a case by case basis, where a valuation is possible but otherwise the application may be delayed.

Nationwide have confirmed the following:

Valuations - Nationwide

As a result of valuers being unable to carry out physical valuations, we’re working urgently to carry out as many Nationwide and TMW valuations as possible via automated valuation model (AVMs) and remote desktop valuations.

We’ll be performing desktop valuations where we can over the next 2 weeks. If a further physical valuation is required, the case will be put on hold until this is possible.

Sometimes we’re unable to assess via desktop, for example on:

  • Some blocks of flats
  • New build sites we’ve not previously visited
  • Cases where a Homebuyer or Full Building Survey is requested
  • HMOs
  • Properties in Northern Ireland

The above list is not exhaustive and any cases which can’t be valued through a desktop or AVM will be placed on hold until a time where government advice allows valuers out to conduct physical valuations.

Offer expiry - Nationwide

Where a customer is one month from offer expiry and needs an extension, we will allow a three month extension – subject to meeting eligibility criteria and confirming their circumstances have not materially changed.

26/03/2020

BM Solutions released the following statement this morning.

Due to a continued decrease in our service capability we have taken the decision to withdraw a selection of mortgage products across our buy-to-let range with a loan to value ratio of over 60% LTV. Our Product Transfer and Further Advance products unchanged. Where possible, we will conduct a remote valuation while we are unable to carry out physical inspections. We are continuing to focus on our existing customers and supporting them with payment holiday arrangements.’

Halifax and Scottish Widows Bank have done the same but with residential products, as the developing situation has directly impacted their available processing resource and they have therefore withdrawn new mortgage and remortgage products across their residential range, for a loan to value ratio of over 60%. They have confirmed that this is only a temporary move, so they can focus on existing customers as a priority and help customers needing to take payment holidays.

The Nottingham released the following information this morning. ‘We are reviewing our product range but whilst we undertake this activity, we are withdrawing the following products and hope to replace them with new products next week.’

M&S Bank have removed their mortgage products temporarily so they can concentrate on assisting current customers financial needs.

Protection

Aviva have announced that they are changing their underwriting process in light of the COVID-19 pandemic. This change is as a result of an overstretched NHS. To avoid placing additional work on GP’s at this time, they will temporarily stop requesting medical evidence as part of their underwriting process. This means that new applications where this is required is will be postponed and they will not be able to provide cover until the strain on the health service is resolved. The vast majority of applications can go straight through processing and some manual underwriting will be carried out however, new applications requiring evidence will not be progressed at this time.

OnPoint Performance has been announced on our social media. Check it out at facebook/onpointmortgages. We have also been sharing pictures from our members of the team with tips for working from home for a bit of light-hearted fun. Please join the community by sharing you photo and including #workingfromhomelife.

25/03/2020

To all clients of OnPoint Mortgages,

First and foremost thank you for your continued patience and understanding during these unprecedented times.

We have been inundated with queries regarding the status/lenders positions of all ongoing applications and current valid agreements in principal. As a result we would like to provide some information and guidance on common questions in order to best manage your expectations and future plans:

🏡 Most lenders are continuing to operate as usual, however some are experiencing delays in their usual turnaround times due to the implications of running on a skeleton staff or remote working.

📞Hold times have significantly increased with lenders due to high call volumes relating to requests for payment holidays. This is affecting how quickly we are able to obtain updates from lenders for existing applications.

🏘 We await updates from all lenders as to whether they will be able to carry out valuation appointments. We have informed those whose cases have already been affected by lenders who have stopped carrying out surveys.

📈 In some instances lenders have put up rates in order to discourage new business, especially those with offshore underwriting teams such as Barclays & Nationwide.

✅ At present all submitted business and mortgage offers with rates secured are being honoured. If you only have an agreement in principal and not provided the documents for a full application this is not the case.

✨ Purchases ✨
We have had one instance where a Solicitor has made the decision following government advice that house purchases are non-essential, and therefore they will be putting all exchange and completions on hold during lockdown. In light of this advice, we suggest that you contact your solicitor to discuss their position. There is no issue with you getting everything in order for exchange and completion post lockdown.

Mortgage movements

center

26/03/2020

BM Solutions released the following statement this morning.

Due to a continued decrease in our service capability we have taken the decision to withdraw a selection of mortgage products across our buy-to-let range with a loan to value ratio of over 60% LTV. Our Product Transfer and Further Advance products unchanged. Where possible, we will conduct a remote valuation while we are unable to carry out physical inspections. We are continuing to focus on our existing customers and supporting them with payment holiday arrangements.’

Halifax and Scottish Widows Bank have done the same but with residential products, as the developing situation has directly impacted their available processing resource and they have therefore withdrawn new mortgage and remortgage products across their residential range, for a loan to value ratio of over 60%. They have confirmed that this is only a temporary move, so they can focus on existing customers as a priority and help customers needing to take payment holidays.

The Nottingham released the following information this morning. ‘We are reviewing our product range but whilst we undertake this activity, we are withdrawing the following products and hope to replace them with new products next week.’

M&S Bank have removed their mortgage products temporarily so they can concentrate on assisting current customers financial needs.

Protection

Aviva have announced that they are changing their underwriting process in light of the COVID-19 pandemic. This change is as a result of an overstretched NHS. To avoid placing additional work on GP’s at this time, they will temporarily stop requesting medical evidence as part of their underwriting process. This means that new applications where this is required is will be postponed and they will not be able to provide cover until the strain on the health service is resolved. The vast majority of applications can go straight through processing and some manual underwriting will be carried out however, new applications requiring evidence will not be progressed at this time.

OnPoint Performance has been announced on our social media. Check it out at facebook/onpointmortgages. We have also been sharing pictures from our members of the team with tips for working from home for a bit of light-hearted fun. Please join the community by sharing you photo and including #workingfromhomelife.

25/03/2020

To all clients of OnPoint Mortgages,

First and foremost thank you for your continued patience and understanding during these unprecedented times.

We have been inundated with queries regarding the status/lenders positions of all ongoing applications and current valid agreements in principal. As a result we would like to provide some information and guidance on common questions in order to best manage your expectations and future plans:

🏡 Most lenders are continuing to operate as usual, however some are experiencing delays in their usual turnaround times due to the implications of running on a skeleton staff or remote working.

📞Hold times have significantly increased with lenders due to high call volumes relating to requests for payment holidays. This is affecting how quickly we are able to obtain updates from lenders for existing applications.

🏘 We await updates from all lenders as to whether they will be able to carry out valuation appointments. We have informed those whose cases have already been affected by lenders who have stopped carrying out surveys.

📈 In some instances lenders have put up rates in order to discourage new business, especially those with offshore underwriting teams such as Barclays & Nationwide.

✅ At present all submitted business and mortgage offers with rates secured are being honoured. If you only have an agreement in principal and not provided the documents for a full application this is not the case.

✨ Purchases ✨
We have had one instance where a Solicitor has made the decision following government advice that house purchases are non-essential, and therefore they will be putting all exchange and completions on hold during lockdown. In light of this advice, we suggest that you contact your solicitor to discuss their position. There is no issue with you getting everything in order for exchange and completion post lockdown.

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