It has also tightened lending criteria for all deals worth more than £3m, by capping the loan-to-value (LTV) at 65%, down from 75%.
Ian Thomas, co-founder and director of LendInvest, said: “Our decision to tighten lending criteria for higher value cases and pause new second charge loans reflects industry caution after the market shock of last week. Until more data becomes available about prime sales in the new market environment, redefining our lending criteria is the most responsible and prudent course of action.”
LendInvest also said that it would continue to lend on open market valuations and that it has not changed published interest rates. Lending criteria also remains unchanged for deals worth less than £3m, with an LTV of 75% or less.
Alastair Ewing of The Lending Channel in Perth commented: “There is a lot of uncertainty about at the moment and I can understand why LendInvest is being cautious. Others will be taking a similar position. However, some lenders are taking the view that it’s ‘business as usual’, which is good for brokers.”