A number of lenders have halted residential lending or lowered their maximum LTV to 60% due to surveyors putting a hold on physical property inspections during the Covid-19 pandemic.
HSBC will accept AVM valuations up to 85% LTV on purchases and 80% LTV on remortgage cases.
At the Coventry, borrowers will see no changes for applications up to 85% LTV, as the lender will be increasing its maximum allowable LTV for non-physical valuations to 85%.
Applications with an LTV over 85% will be accepted and processed to the point of valuation, when they will be put on hold until a physical valuation can happen.
For flats, the maximum allowable LTV will be 50%.
Applications for buy-to-let purchases will still be accepted and processed to the point of valuation, then kept on hold until a physical valuation can happen.
For buy-to-let remortgages, the Society will allow non-physical valuations for applications up to a maximum LTV of 75% for houses and 50% for flats.
The Coventry will use a non-physical valuation on all residential and buy-to-let pipeline cases, regardless of LTV, on all business submitted up to and including Thursday 26th March, where a valuation has not already taken place.
