Gatehouse Bank has lowered its maximum FTV amid the coronavirus pandemic.
Gatehouse Bank has lowered its maximum FTV amid the coronavirus pandemic.
The lender will now only consider applications up to 65% FTV on both buy-to-let and home purchase plan applications.
Previously, applications for BTL and home purchase plan mortgages were considered up to 80% FTV.
According to the bank, the initial rental rates for all products at 65% FTV will remain unchanged.
As a result of switching to desktop valuations, the lender has enforced these measures, it said.
Additionally, 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.
Existing applications, once standard valuations are available, will continue to go ahead.
Furthermore, the lender is offering a payment holiday of up to three months to homebuyers and landlords.
Charles Haresnape, chief executive 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.”
