Gatehouse Bank has announced it is reducing its maximum finance to value (FTV) on its buy-to-let (BTL) and home purchase plan products to 65%.

The move is to enable the bank to continue providing finance to some applicants during the coronavirus pandemic.

Gatehouse Bank revealed it will be switching to desktop valuations in order to continue to provide home finance for homebuyers and landlords. Furthermore, due to the limitations of desktop valuations, the bank is also temporarily unable to finance houses in multiple occupations (HMOs), multi-unit freehold blocks (MUFBs), new builds and apartment buildings with more than six storeys.

While the bank confirmed it would not be accepting new applications for financing of above 65% FTV from the end of today, it has committed to proceed with existing applications – once standard valuations are available. The initial rental rates for all products at 65% FTV remain unchanged.

Gatehouse also announced it is supporting existing customers who are facing difficulties during the Covid-19 crisis, offering a payment holiday of up to three months to homebuyers and landlords.

Gatehouse CEO, Charles Haresnape, said: “These are clearly challenging times, as it is not possible for standard valuations to be carried out, due to social distancing. We have had to make changes to our products in order to continue to support homebuyers and landlords. We hope these changes will only need to be in place for a short period of time and plan to broaden our proposition, as soon as it is possible to access standard valuations.

“We will also be contacting customers who have recently applied for finance above 65% FTV and have not had a valuation carried out, to make them aware of our decision and advise them that we would be happy to proceed as soon as standard valuation is possible.”

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