LendInvest limits LTVs but confirms intention to keep lending
LendInvest has limited the loan-to-values for bridging loans to 70% for residential property and 60% for commercial property.
The lender has been updating its product catalogue in response to the recent market turbulence caused by the ongoing COVID-19 crisis but confirmed that it intends to continue lending.
For buy-to-let (BTL), LendInvest has limited LTVs to 70% and will lend a maximum of £750,000 on standard properties and HMOs up to eight rooms only.
LendInvest will process new applications using Automated Valuation Models (AVMs). Offers on successful applications will be made on condition that a full physical valuation is conducted before completion.
In an open letter to staff, Rod Lockhart, CEO of LendInvest, addressed the decision to make these changes to lending criteria.
He said that the company “intends to keep lending albeit with much greater caution”.
He added that the lender has made some important choices about its lending terms, “tightening them in places where it makes sense to be more prudent and circumspect while events unfold”.
LendInvest has been working remotely since 17 March. During March, it completed 70 bridging loans and over 150 buy-to-let loans and the company is continuing to complete loans already in its pipeline.
The company made the decision this week to use the government’s job retention scheme and furlough some staff but remains open for new business with more than 140 of the company’s staff still working remotely.
Rod Lockhart, CEO of LendInvest, said: “It has been an extraordinary few weeks – unlike anything any of us has experienced in our working lives.
“At such a challenging time, it’s important that property landlords and investors know that funding options are still accessible and LendInvest intends to keep accepting applications that meet our criteria.
“We also want to make sure that when this is over LendInvest is best placed to hit the ground running again.”