Kensington has withdrawn a number of mortgage products due to not being able to carry out property valuations because of the coronavirus.
Kensington has also reduced its maximum loan-to-value on all products (both residential and buy-to-let) to 70 per cent. It warns brokers that whilst sourcing systems may still indicate it is open to applications at 75 per cent LTV, it will only consider loans at 70 per cent LTV or below.
The lender says that new and existing applications below 70 per cent LTV and without a valuation will remain in its pipeline until it can obtain an appropriate valuation.
Kensington has also reduced the maximum property value to £1m, across both residential and buy-to-let. New build, Help to Buy, Later Life, HMO and MUB products have all been withdrawn.
Kensington has also extended its list of property exclusions due to not being able to commission physical valuations. The full list of exclusions is on the “lending criteria” section of the Kensington website.
The list includes: flats above or adjacent to commercial premises; flats with balcony or deck access; properties built by modern methods of construction; flying freeholds; buy-to-lets with more than four bedrooms; ex-local authority flats and maisonettes; basement or studio flats; blocks of flats over six floors with external cladding; and live/work units.
The lender says that all pipeline cases already in receipt of a valuation will continue as usual. Pipeline cases above 70 per cent LTV without a valuation will be cancelled.
Pipeline cases below 70 per cent LTV without a valuation will proceed as and when Kensington has an alternative valuation solution
Kensington says it hopes to reinstate its full product range when physical valuations can re-start.
