The lender has cut its maximum loan to value (LTV) to 70 per cent for new applications on residential and buy-to-let (BTL) business and is cancelling some cases not yet at offer.
It has withdrawn its whole ranges of new build including Help to Buy, later life, and houses in multiple occupation (HMO) and multi-unit block (MUB) products.
It warned that while sourcing systems may still indicate it is open to applications at 75 per cent LTV, the lender highlighted that it will only consider loans at 70 per cent LTV or below.
All pipeline cases already in receipt of a valuation will continue as usual, while pipeline cases below 70 per cent LTV without a valuation will proceed when an alternative valuation solution is available.
Kensington said it was “regrettably” cancelling pipeline cases above 70 per cent LTV without a valuation as it will have no valuation solution until internal valuations resume.
The list of property exclusions has also been extended.
Kensington apologised to brokers for the inconvenience and said that having anticipated this situation it was working on a solution which it hopes will be available shortly.
“The valuations solution we are exploring will not be suitable for our full product range and so, to be fair to you and your customers, we have now also withdrawn those further products that we expect will still require a physical valuation, such as new build,” it said.
“This is in addition to the removal of all buy-to-let and residential products above 70 per cent LTV.
“Apologies for the disruption this will cause to you and your clients, please bear with us and we will communicate more around our new valuations process as soon as it is ready,” it added.
Masthaven has also reduced its maximum LTV and removed many products.
Its first charge residential range is now limited to its MB0 and MB1 deals with a maximum LTV of 75 per cent, as is its buy-to-let range.
Specialist property and specialist landlord and tenant criteria are no longer available.
For employed applicants variable pay such as overtime, bonus or commission is no longer accepted, only basic annual salary can be used when completing an affordability assessment or decision in principle (DIP).
The second charge range of products is now limited to 70 per cent LTV.