AVMs will be accepted on purchase, remortgage and buy-to-let applications up to 60 per cent loan to value (LTV) on a case by case basis and to a maximum property value £750,000. These will be accepted on properties within the society’s core lending area, except for central London.
Desktop valuations will be accepted on shared ownership new–build houses up to 95 per cent LTV, as well as standard residential new-build houses up to 60 per cent LTV on a case by case basis. Properties up to a maximum value of £500,000 will be considered.
Roger Knight, lending manager at Newbury Building Society said: “We understand the current government social distancing regulations have resulted in a halt of physical valuations which has impacted both brokers and the clients they serve.
“Although the world has changed, life still goes on and therefore, we hope the temporary acceptance of AVMs and desktop valuations during the Covid–19 crisis demonstrates our commitment to giving brokers the tools they need, at the right time, to help their clients fulfil their homeownership ambitions.”
Marsden BS limits lending and introduces desktop valuations
Marsden Building Society has capped its lending at 60 per cent LTV and moved to desktop valuations for all its mortgages in light of the restrictions imposed on the housing market during the pandemic.
It will only lend on properties with a maximum value of £1m and will consider properties where the value exceeds £1m on a case by case basis.
The society said due to restrictions on non-essential travel, it was currently unable to conduct physical and drive-past valuations.
Marsden will continue to review application in principle requests. It will only collect booking fees for fully submitted applications once it is able to use desktop valuations and it is confirmed that the case is still active.
The society said it was able to progress the majority of cases in its pipeline except for those where a desktop valuation is not possible. These cases will be put on hold until a physical valuation can be carried out.
When full valuation services resume, Marsden will contact brokers, collect the booking fee from the client and instruct a valuation. It will refund any booking fees already collected if it considers the case to be “high risk”.
Where clients have received an offer, Marsden said it will work with intermediary firms and, if the case is still proceeding, it will waive any re-offer fees that are required.
A spokesperson for Marsden said: “Whilst we have seen a slowing in purchase enquiries due to Covid-19, we continue to see demand for remortgages. Our recent move to desktop valuations means that for the majority of enquires, the LTV limits we have set won’t be a difficulty.”