Charles McDowell, managing director of specialist mortgages at HTB (pictured above), stated that until it had more clarity around the actual performance of property prices post Covid-19, it was restricting its maximum LTV.
“We will continue to review our position as we are able to build up our base of up-to-date house price data.
- Masthaven launches new broker portal offering instant DIPs for bridging
- HTB goes live with asset finance platform Alfa Systems
- Budget 2020: Calls to reduce 'punitive' stamp duty and reform BTL taxation
“Valuation is as much an art as it is a science, but a key element of any valuation is suitable comparable transactions and the truth is that we won’t have comparable transactions for a number of months in some cases.”
Charles said that its valuation partners were responding to this by having material uncertainty clauses included within their reports.
“We, in turn as a lender, are responding to this material uncertainty by reducing our maximum LTV to 60%.
“If and when we begin to see valuation reports without these clauses, we will lend up to 75%.”
Leave a comment