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Important information - changes to product offering and policy requirements

12th May 2020

Following the Government guidance to “stay at home”, we have seen valuation panel managers across the industry stop all physical valuations. Where possible, we will use alternative ways to value a property, such as desktop surveys and AVMs. Unfortunately, this will not be available in all cases and therefore we’ve had to make some changes to our product offering. We have also made changes to some of our policy requirements.

What does this mean for your clients?

Where we can, we will use non physical valuations and can accept the following cases:

  • Residential remortgage to 75% LTV
  • Residential purchase to 65% LTV
  • BTL purchase and remortgage to 60% LTV

The maximum property value we are able to accept is £500,000.

We are able to use non-physical valuations for properties up to a maximum of 4 stories of standard traditional construction in mainland UK.

We are currently unable to assist with new build, ex local authority (or similar), properties above or adjacent to commercial, leaseholds with under 85 years remaining, joint borrower sole owner applications, or for unencumbered capital raising.

Existing Applications

You may have existing applications with us that are now unable to progress while physical valuations are on hold. Your BDM will be in touch with you on a case by case basis to discuss your clients’ situation. If your client decides they want to continue with the application, we’ll keep the case in our pipeline. Alternatively, your clients can cancel and any valuation or product fees already paid will be refunded.

Mortgage Offer extensions

If your client has a Mortgage Offer that is due to expire and they have exchanged contracts on a property purchase, you can request that the Mortgage Offer is extended by 3 months. We're happy to take requests for a Mortgage Offer extension once there is less than a month remaining on the valid period of the Offer.

The request will need to be made through your client’s Solicitor, who can use the usual routes to contact us with the request. As a responsible lender we will need to ensure that the mortgage is still affordable so we will need to see up-to-date proof of income.

When we review the request to extend the Mortgage Offer, we will base our decision on the mortgage product confirmed in the original Offer. If your client wants to change mortgage products, you will need to make a new mortgage application.

Affordability Policy

We’ve also had to make some temporary changes to our current lending policy which means unfortunately we are currently unable to accept the following:

  • Any form of variable income (overtime, commission, bonus). Affordability will be assessed on basic salary only.
  • Where an employed customer is designated as furloughed, or a self-employed customer has applied for the self-employed income support scheme, their income will not be used in the affordability assessment.

Self-employed customers will also need to provide their last 3 months business bank statements to evidence continued turnover.

The changes to our affordability policy do not impact applications received before Friday 17th April 2020, which will continue to be assessed on a case by case basis.

Product Transfers

Product transfer applications submitted by brokers are not affected by the restrictions to LTV when we are able to establish a valuation figure without having to carry out a physical valuation, and are not impacted by changes to affordability policy.

Service Update

Due to the impact of Covid-19 we are focussing our resources on providing crucial services to customers during these difficult times, therefore our 10-day Application to Offer Service Commitment has been paused. We are working hard to progress cases in our pipeline and support our existing customers and remain committed to getting offers to your customers as soon as we can.

Contacting your BDM

Your telephone Business Development Manager is currently out of the office, so for help and support with any applications, please contact your dedicated field Business Development Manager, you can find their contact details on our BDM Finder.

Don’t forget that you can find the latest status of an application in our case tracking updates. If you do need to call us, you can find our contact details on our website.

We’re continuing to monitor the current situation closely and we’re working hard to support you and your customers during these difficult times.

Yours sincerely

The Clydesdale Bank Intermediary Team

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