Leek United caps borrowing

Ryan Fowler

April 7, 2020

Leek United

Building society Leek United has temporarily reduced its maximum loan-to-value (LTV) at 80% for residential mortgages. 

It has also capped buy-to-let lending at 65%. The maximum loan at this time is also restricted to £500,000.

The society has made the move after suspending physical valuations in light of the ongoing coronavirus outbreak.

A statement from the society reads: “Due to coronavirus (COVID-19) and the health & safety of our members and colleagues being our top priority, we have temporarily suspended our physical property valuation on new mortgage applications.

We have introduced desktop valuations for Residential mortgages with a loan-to-value of 80% or below and for buy-to-let mortgages a maximum loan-to-value of 65% or below.

“The restriction to desktop valuations also prevents us from being able to complete a valuation on new build properties or flats.

“We are monitoring government guidance continuously and unfortunately at this time we will not accept any new applications above the stated loan levels or where the loan amount is greater than £500k until further notice.

“In addition to this we are unable to accept any new applications for any new build properties or flats regardless of LTV or loan amount.”

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