COVID 19 – Temporary Changes

We know that the recent developments regarding COVID 19 (Coronavirus) is a concern for you and your clients. We want to reassure you that we are doing everything we can to continue to offer you the best possible service during this time.

Below are the temporary changes that are now in place for valuations and our lending criteria

VALUATIONS

We are now able to offer Physical Valuations in England, subject to meeting government requirements and risk assessment guidelines.
We are continuing to utilise Desktop Valuations, which cover the following scenarios:

  • All properties must have been built over 24 months ago;
  • Maximum loan of £750k on all cases;
  • Residential Purchase up to £500k – max LTV 80%;
  • Residential Remortgage up to £500k – max LTV 80%;
  • BTL Purchase up to £500k – max LTV 75%;
  • BTL Remortgage up to £500k – max LTV 75%;
  • All loans over £500k – max LTV of 60%;
  • Max Property Value of £1m outside M25 or £1.5m inside M25 (prime central London on a case by case basis)
  • Flats – must less than 6 storeys and not studios

Other criteria also applies, so to find out if your case is suitable for a desktop valuation please email intermediaries@chorleybs.co.uk or give an Underwriter a call on 01257 235001.

LENDING CRITERIA

If you want to see all our lending criteria please click here

 

Affordability
Employed (Furloughed)

If a borrower’s employed income has changed, as they are now on the government’s Coronavirus job retention scheme (known as furlough), the affordability assessment will be based on the new revised income as follows:

  • The ‘furloughed’ amount which is 80% of the employees wage, capped at £2,500 a month (£30,000 a year);
  • If the employer is topping up the wage, this can also be used;
  • Bonus, Overtime and Commission will be excluded;
  • We will require sight of confirmation from the applicant’s employer to confirm their employment status and what their income will be;
  • We will require latest payslip prior to offer to evidence post-COVID 19 income and that still employed.

 

ALL FURLOUGH CASES WILL BE SUBJECT TO MORTGAGE CREDIT RISK COMMITTEE APPROVAL

 

Bonus, Overtime and Commission

  • Bonus – maximum of 50% averaged over the last 2 years;
  • Overtime – maximum of 50% averaged over the last 3 months;
  • Commission – maximum of 50% averaged over the last 2 years;

Where any elements of a borrower’s income are reducing, including overtime, commission and bonuses the lower amounts will be used in the affordability assessment.

 

Self-Employed

 

  • We will require a minimum of two years trading supported by SA302’s and corresponding tax overviews, plus finalised accounts.
  • We will no longer accept projections of self-employed income.
  • In addition the following confirmation in writing of the following:
  • That the company is still trading;
  • How (if at all) the company has been impacted by COVID 19;
  • If the client has applied for any of the Coronavirus Support Schemes and whether they have been accepted.

ALL SELF-EMPLOYED CASES WILL BE SUBJECT TO MORTGAGE CREDIT RISK COMMITTEE APPROVAL

Buy to Let Lending
Loan to Value

  • Maximum 75%

First Time Landlords

  • We will not accept applications from first time landlords.

Top-slicing

  • We will not accept cases using Top-slicing.
Scottish Lending
We continue to accept applications in Scotland, however will not allow cases to complete until we have confirmation that the Scottish Land Registry has re-opened.
Process
As part of your DIP submission, we will ask you to complete a supplementary Coronavirus declaration for your applicants which can be found here. It is vital that if at any stage your applicant’s circumstances change you immediately inform the Society so we can assess how this affects their application / offer.