HTB ups lending to 75 per cent LTV as valuations return

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  • 18/05/2020
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HTB ups lending to 75 per cent LTV as valuations return
Hampshire Trust Bank (HTB) has increased its allowable maximum loan to value (LTV) to 75 per cent with the return of in-person valuations.

 

The lender is increasing its limit from 65 per cent LTV, but has added further restrictions including loan size and interest cover ratio (ICR) caps for higher LTV levels.

All buy-to-let (BTL), houses in multiple occupation (HMO) and semi-commercial deals are eligible for 65 per cent LTV providing they meet HTB’s standard criteria.

For 70 per cent LTV, there is a maximum loan of £3m, an increased ICR by 10 per cent or six-months’ worth of interest is to be placed on account for the first 12 months of the loan.

The borrower must also have a BTL track record and have taken no payment holidays across their portfolio.

At 75 per cent LTV the maximum loan size is cut further to £750,000 in London and £550,000 nationally and ICR levels have been increased by 15 per cent.

The property must have been used as a rental property recently. New build, heavily refurbished properties and studio flats are excluded.

Cases will only be accepted for purchase deals or minimum capital raise refinances. Onceagain the borrower must have a BTL track record and have taken no payment holidays across their portfolio.

 

Right properties and borrowers

HTB managing director Charles McDowell (pictured) said: “It is more important than ever that we continually review our lending criteria as more information comes to light.

“With immediate effect we are increasing our maximum LTV to 75 per cent for the right type of deals – the right properties, the right yields and the right borrowers.”

Sales director Marcus Dussard added that the team was excited about introducing the changes and resuming work with brokers.

 

 

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