Bridging lender MT Finance has reduced its loan-to-values (LTVs) as it adapts to the current market conditions caused by the COVID-19 crisis.
In the immediate MT Finance will offer up to 65% LTV against residential for both first and second charges and the same for semi-commercial properties. This will again be for both first and second charges.
For commercial properties first charge only the lender will go up to 55% LTV.
Gareth Lewis, commercial director at MT Finance, said: “MT Finance is dedicated to continuing to support the broker community through this challenging time.
“Our core principles that have made up the foundations of our business remain unchanged as we continue to provide flexible, transparent, and commercial lending solutions to meet our client’s needs.
“We are lending at sensible loan to value levels, to enable each transaction to work where possible, whilst also safeguarding against further potential market changes.
“We will ensure that each loan has an appropriate term, which gives clients the best opportunity to complete the transaction and implement their exit strategy.
“We are working with all our surveyors and solicitors to ensure that we can provide the best coverage and service possible.
“We are committed to finding solutions to the issues that social distancing can create. We currently have valuation coverage throughout the UK and Wales and a fully operational solicitors’ panel.
“Where available and appropriate we can consider existing valuations from within the last three months alongside an audit from one of our panel valuers.
“We remain focussed on working creatively to find solutions to the challenges we all presently face in conducting business.”
MT Finance has been praised by brokers for supporting the market when some lenders have ceased lending.
Andrew Hosford, managing director of brokerage Pure Structured Finance, said: “In these difficult times we have seen a number of lenders pull back on lending – and not without reason for many.
“It is reassuring to see that some lenders continue to support the market despite the ongoing issues.
“With valuations having become an increasingly difficult proposition it is only prudent that lenders reduce LTVs to protect the borrower, which aligns with our role as the broker.
“In these worrying times it is reassuring to see lenders, such as MT Finance, are continuing to keep the market moving.”