Mansfield Building Society is following a number of lenders by tightening its criteria due to the impact of government restrictions to tackle the coronavirus outbreak.
With immediate effect, the society has limited lending to 80% LTV across its range of residential mortgage products and imposed restrictions on all new buy-to-let (BTL) business, including the temporary suspension of lending on holiday lets and reducing the maximum LTV on BTLs to 65%.
Lending to 80% LTV is still subject to valuation which has been hampered by the government-imposed rules, but the society is allowing the use of automated valuation models (AVMs).
The use of AVMs is limited to residential remortgages to 65% LTV.
Paul Lewis, national development manager at The Mansfield, said: “We’ve developed some terrific broker relationships that we’re keen to continue to support throughout the ongoing crisis but as you’d expect, we’ve had to temper our product range accordingly.
“We hope that the government’s strict measures introduced this week start to make a real impact on the coronavirus pandemic, and that the product and criteria changes imposed will soon be relaxed.”