Masthaven pulls products and curbs LTVs

by:
  • 03/04/2020
  • 0
Masthaven pulls products and curbs LTVs
Masthaven has made changes to its product range including the removal of its development, commercial and larger bridging loans.

 

The bank has also restricted its other lending operations due to limitations on physical valuations.

A spokesperson for Masthaven said the product changes would not impact cases in its pipeline.

However, it will be applying its valuation service to pipeline cases which are yet to receive a valuation.

For bridging cases, where a full valuation is not available, Masthaven will consider drive-by valuations supported by an automated valuation model (AVM) at a maximum loan to value (LTV) of 60 per cent.

Where a drive-by valuation is not available, the bank will make use of its AVM Plus service, at a maximum of 50 per cent LTV.

In a communication to brokers, the lender said it will not be accepting any new development or commercial loans until further notice.

“This will enable our team to support existing borrowers with projects already in progress.”

It added that it was removing its larger bridging loans range but the maximum loan size will be increased on its prime and standard range.

These will be limited to 70 per cent LTV for first charge and 60 per cent LTV for second charge.

The minimum term for bridging loans will be 12 months and early repayment is subject to a minimum of one month with interest paid.

Refurbishments will not be available on prime products.

 

No pipeline impact

A spokesperson for Masthaven confirmed the changes would not impact cases in its pipeline and said it would apply its valuation service to pipeline cases which are yet to receive valuation.

In the message to brokers, the lender said it was making some temporary changes to its product range and criteria as a result of the coronavirus crisis.

“We’re open for lending. We believe that at this time it’s important, as a bank, that we support you and your customers with financing options responsibly structured and underwritten,” it said.

“So while we are making changes we are continuing to offer a lending range.”

It added: “We know that there are lots of changes being made across the market but hope you appreciate that making these changes enable us to continue to support you and your customers during this unprecedented time.”

The product changes will be effective from 6 April.

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
‘Networks should completely waive broker fees not postpone a debt’ – Star Letter 03/04/2020

Each week, Mortgage Solutions and its sister title Specialist Lending Solutions run a Star Letter feature, in which we collate...

Close