Landbay removes high-LTV deals and introduces two-minute DIP

Landbay has withdrawn its 80 per cent LTV products and will now lend up to 75 per cent LTV, with the lender attributing this decision to a rise in the cost of funds. 

However, it will continue to lend across the same range cases including homes in multiple occupancy, special purchase vehicles, multi-unit freehold blocks and other complex buy-to-let. 

Last week, Landbay CEO John Goodall wrote in Specialist Lending Solutions that non-bank lenders could face significant issues due to the Covid-19 outbreak with funding markets either almost closed or far more expensive.

Faster DIP

Landbay has also sped-up its application process with the introduction of a decision in principle (DIP) which it claims takes two minutes.

The DIP uses technology in line with the paperless application process and the lender said it has reduced mortgage application to completion to nine steps.

It now incorporates a soft credit search and online identity checks, features which were previously part of a separate process. 

Landbay used broker focus groups to test the system and recommend changes, with the group ultimately deciding the order and the flow of the process. 

Paul Brett (pictured), managing director of intermediaries at Landbay, said: “Brokers are the lifeblood of our business and so they were instrumental in the design of this, in order that we could deliver what they want in the way that they most need it.  

“We believe in a hands-on approach to achieve the most appropriate outcome both for the broker and their client.” 

To deal with the novel coronavirus and protect its staff, Landbay’s employees have been working from home for over a week.  

The lender said brokers could continue to contact its business development managers and underwriting teams as normal and insisted they would receive the same service standards.