Fleet and Landbay limit LTVs to 60 per cent

At the same time, Landbay has limited new mortgages to 60 per cent LTV, as specialist lenders adjust to the impact of the coronavirus.

Pepper Money said it is still able to lend, however it does not accept automated, desktop or drive-by valuations.

The lender said it is investigating “viable alternatives” but is therefore not able to offer new loans at present.

Fleet is also limiting LTVs up to 60 per cent.

The lender added it is able to accept new applications and is looking at alternative options for valuations, it added the situation will remain under constant review.

Physical valuations are not set to take place until after Easter at least, in an initial period announced by the government – but this could be extended for longer.

Pepper said it would give customers the option of a full refund on fees or they could proceed with an application, with the understanding of the valuation situation.

Landbay

Landbay says it is still fully operational at present.

Paul Brett, managing director at Landbay said: “This market is challenging for everyone, lender, broker, lawyer, surveyor and borrower.

“Lenders are having to reduce LTVs to reflect the unprecedented risk challenges at the moment. This is not ‘business as usual’ for anyone.

“However, there are lenders that are open for new business and brokers are still looking for the best solutions for their clients.”