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Coventry BS extends LTVs but limits self-employed borrowing

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  • 29/04/2020
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Coventry Building Society has relaunched 75 per cent loan to value (LTV) remortgage deals while also changing criteria for self-employed and buy-to-let (BTL) borrowers.

 

Last month the lender withdrew all its purchase and remortgage products above 65 per cent LTV in response to the coronavirus restrictions.

It has now extended this up to 75 per cent LTV with a range of residential and BTL remortgage deals.

Four products have been launched for residential borrowers – two-year and five-year deals with no fee or £999 fee options.

Rates start at 1.5 per cent for the two-year fix with £999 fee, while the fee-free five-year fix is at two per cent.

For BTL products, three fee options are available ranging from £0 to £1,999 at either two or five years, with rates starting at 1.95 per cent up to 2.75 per cent.

The mutual is also changing its five-year fixed reference rate for BTL mortgages.

From 29 April, for BTL clients taking a five-year or longer fixed rate for the whole mortgage amount, the reference rate will be 5 per cent.

 

Self-employed criteria

And Coventry BS has also tightened the way it assesses self-employed residential applicants.

In a message on its website the lender said: “Due to the impact of coronavirus, the way in which we underwrite residential self-employed cases is temporarily changing.

“We’ll only accept applications from businesses that continue to actively trade. Each case will be individually assessed by our underwriting team, which means that agreements in principal (AIPs) for your self-employed clients may take a little longer.”

It added that brokers may be required to provide further information, for example, three months’ business banking statements.

Any applications submitted before 29 April will be assessed under the previous self-employed policy.

 

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