Interbay resumes buy-to-let lending

The lender has also brought back semi-commercial products but it is not able to obtain valuations on these at the moment.

Interbay, which is part of One Savings Bank, had been forced to stop lending as a result of restrictions placed on valuers in March.

It has now returned with a pair of deals using a desktop valuation-based approach, with a two-year fix available at four per cent and a five-year fix and 4.1 per cent.

Both products have a 1.7 per cent fee, although this will be reduced to 1.45 per cent for existing borrowers and there are no assessment or valuation fees.

Loan sizes range from £100,000 to £700,000, the maximum property value is £1m, interest-only options are available, and it will also accommodate complex ownership structures including limited companies and partnerships.

It will consider lending on houses, flats, blocks of flats, multiple units on one freehold, new-build at up to 60 per cent LTV, and properties converted during past two years at up to 60 per cent LTV.

However, other properties such as houses in multiple occupation (HMOs), listed buildings, modern methods of construction and those adjacent to or above commercial premises are excluded.

Submitting cases

Desktop valuations will be reviewed by Interbay once completed and the lender asked brokers to understand that cases may take longer than normal to progress.

Once the valuation has been reviewed by the underwriter and they are happy to proceed, the case will be processed in the usual manner.

However, it added that it was unable to accept any valuation challenges, and the underwriter’s decision will be final.

For brokers already with eligible pipeline cases at pre-offer stage, Interbay may be able to switch the product if desired.

It will also consider reducing loan amounts on exiting applications to meet the 70 per cent LTV limit.

When switching a product, any fees that can be refunded will be done so when the application reaches formal offer.

Worked closely with valuers

A statement on the lender’s website said: “Following government restrictions introduced to prevent the spread of Covid-19, we’ve worked closely with our valuation panel partners and are pleased to confirm we’re now able to accept desktop valuations on buy to let first charge mortgages.

“With up to 70 per cent LTV available on properties up to £1m, our buy-to-let products can help your clients with larger loans on higher valued properties.

“This, coupled with our approach to lending to investors with more involved ownership structures, could really help your clients.”

Semi-commercial lending

A pair of semi-commercial products are also available at up to 60 per cent LTV – a two year fix at 4.85 per cent and a five-year fix and 4.95 per cent, both with 1.5 per cent product fee that will be reduced to 1.25 per cent for existing borrowers.

“To enable you to get back to business as quickly as possible, we’re pleased that we are able to work with you to progress your semi-commercial cases,” Interbay said.

“We can now underwrite your cases to valuation instructed stage and work closely with you to ensure that we can proceed quickly when physical valuations recommence.”

An Interbay spokesman told Specialist Lending Solutions: “InterBay Commercial has today launched a new range of semi-commercial products up to 60 per cent LTV and buy to let products up to 70 per cent LTV, available on properties with a value of up to £1m.

“While physical valuations remain unavailable due to government restrictions, semi commercial applications will be underwritten up to the valuation stage, and held until restrictions are lifted.”