Foundation Home Loans have suspended all new applications.
The full impact of the Covid-19 emergency and the impact on our industry continues to unfold. All lenders, including Foundation Home Loans, are facing huge demand from their borrowers for mortgage payment holidays (MPH).
Whilst Foundation believe all of this will be temporary, they must take necessary steps in the short term to allow them to trade through this unprecedented disruption, which are as follows:
1. Suspension of all new applications
The decision to temporarily suspend all new applications as from 31 March 2020. This is to allow us to focus on delivering support, including MPH arrangements, to our 25,000+ borrowers.
2. Pre-valuation applications on hold
All pre-valuation applications on hold until further notice.
3. Covid-19 job retention programme
In order to focus their efforts on MPH, they have advised our staff that they will furlough a number of our employees under the government Covid-19 Job Retention Programme. This means that they will be asking these employees not to work during the month of April, during which time they can we can re-evaluate our product offering in this fast-changing environment.
As Bluestone continue to navigate through these unprecedented times, they wanted to keep you updated on the most recent changes to their products, criteria and rates.
Here’s a quick summary of our latest updates:
Clear, AAA & AA products all capped at 75% LTV (excluding product fees which can be added)
Maximum loan size now £500,000 on all products
They will no longer accept overtime, commission and bonuses in our affordability calculations unless the applicant is a key worker as defined by HM Government.
Customers employed in the leisure, hospitality & retail industries will no longer be accepted
Loan to Income ratio will be capped at 4.5x for all residential loans
Buy to Let loans no longer available to First Time Buyers
Investment BTL will only now be available on Clear product basis
New build construction is now only available on Help to Buy loans
They are amending the minimum remaining lease terms for residential to 40 years and 50 years for BTL
All product and criteria changes will apply to all pipeline applicants that have not yet received a formal mortgage offer. We regret that they will be unable to proceed with applications already submitted to us that fall outside of the new criteria changes. Any valuation fees paid on pipeline applications which are unable to proceed will be refunded.
The UK Government’s instruction to work from home extends to our valuers that are an integral part of the mortgage application journey. This will prevent any physical valuations being completed until further notice. We are working on alternative solutions and will provide a further update as soon as possible. In the meantime, we will prioritise those applications where the valuation has already been completed. All new applications will be processed and underwritten as normal, then held awaiting the valuation and our final assessment.
Masthaven are making some temporary changes to their product range and criteria to reflect the current coronavirus situation. They will, of course, continue to monitor the situation and keep you updated.
They're making the following changes tomorrow:
First charge residential products
MB0 - maximum LTV now 75%
MB1 - maximum LTV now 75%
MB2 - no longer available
First charge buy to let products
Specialist Property - no longer available
Specialist Landlord/Tenant - no longer available
Second charge residential products
MS0 - maximum LTV now 70%, maximum loan now £150,000
MS00 - maximum LTV now 70%, maximum loan now £150,000
MS1 - no longer available
MS2 - no longer available
Second charge buy to let no longer available
Employed applicants - Masthaven are not able to consider using any variable elements of pay like overtime, bonus or commission. Please only enter basic annual salary when completing an affordability assessment/DIP
Zero-hour contracts - Will not be considered except for key workers as defined by the government during COVID-19
Contractors - They need a minimum of 3 months remaining on a current contract or evidence of a contract renewal for at least 3 months
Self-employed - Masthaven are not able to consider using projected income
Debt consolidation - at the time of the application, the total value of unsecured debt must be no greater than the customer(s)’ total annual income, all unsecured debts must be operating within their agreed credit limit, and the loan must be on capital and interest repayment
They'll also be reviewing all pre-offer applications to assess the customer's long term affordability in view of COVID-19. Mortgage offers that have already been issued remain valid.