Covid-19 Update


Covid-19 Update from Restore Finance:

During Covid-19 we approached every single one of our panel lenders and asked for an update on where they stood with Covid-19. Our findings were that: one third had stopped lending (either not lending at all, not welcoming new applications or solely focussing on current cases), one third had lowered their Loan to Values (to maximum 60/65%) and one third was business as usual. We asked for regular updates from our lenders and over the last two weeks the majority of our lenders that had stopped lending due to Covid-19 have now begun lending again. Our panel lenders that hadn’t stopped lending, but rather lowered their LTVs, have increased them back to their normal percentage (maximum 75%). One of our lenders is now offering a blended product which offers an LTV of 80%.

Valuations: During the lockdown, all physical valuations were halted. Our lenders were using desktop valuations, automated valuation models (AVMs) and drive by valuations. However, some lenders are now getting physical valuations instructed again so our lenders will choose whether they believe the security needs a physical valuation or if they can use the other methods of valuations that they have been using.

House Viewings: As you will have noticed on the news, house viewings are now allowed to resume. This is positive news for our clients – especially those who need to sell their properties – and investors who will be able to look out for development opportunities. In fact, we have noticed that many houses and sites have been added to the market in the past few weeks; great new investment opportunities.

Have you got a current bridging or development loan that is close to the end of its term?

If you are close to the end of your term on your loan (for bridging finance this is usually 3-12 months and for development finance this is usually 12-18 months) then this means that you are approaching default. When you approach default, it means that you have gone over the agreed amount of time that you have taken out the loan for. Consequently, lenders have a right to charge you default penalties, which, for some lenders, can be as high as 21% on the first day. Therefore, it is very important that you secure your exit before you go into default. We have received quite a few enquiries that are close to default due to construction sites and materials not being open due to the lockdown. Our lenders are being very understandable due to this situation so if you need to refinance your current loan, then get in touch to avoid those default rates.

These are small steps, but the financial market is back on the rise and we are here to arrange any funds that you need.

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Email: enquiries@restorefinance.co.uk Call: 01942 665 305

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