They will still approve lending up to 70% LTV however if the customer needs 70% LTV, on day one, they will agree to the loan and wait for valuers to return to normal working practices.
To support residential landlords, they are:-
- Reducing our arrangement fees from 2% to 1.5%
- Providing rates commencing from 3.99% for residential investment landlord mortgages. LTVs considered up to 65%
- Thie commercial landlord investment and owner-occupier offers remain largely unchanged apart from LTVs considered up to 60%
- For commercial landlord investment and owner-occupiers, they are no longer lending into sectors affected by temporary closures due to Government Covid-19 restrictions.
In addition, for other deals, on a case by case basis they are requesting additional information in the form of commentary as to how the business has been affected by the Coronavirus pandemic and information with regards to the business’s ability to service the proposed debt in both the short and medium-term.
Once the restrictions are lifted, they will return to the sector as normal.
They have also introduced desktop valuations for all new business as a temporary measure to support customers through these difficult times.
The quote for the valuation will include a desktop review/valuation and then a follow-up visit and full valuation once the restrictions have been lifted.
The desktop valuation will not benefit from a close review of the property and visit, and from a risk perspective, Redwood will restrict funding to be 65% Loan to Value for Residential properties and 60% Loan to value for Commercial assets – lower of MV/VP.
Redwood will approve lending up to 70% LTV as per standard policy, and the balance will be advanced once the satisfactory full valuation is received following a valuer visit.