This webpage is designed to update our Intermediaries on key service updates caused by COVID-19 disruption and was last updated on the 29th April 2020.
Important update on our response to the industry wide challenge of physical valuations
As we head into an extended period of “lockdown”, with further extensions seeming more likely, Vernon Intermediaries continues to operate an individual case-by-case personal approach to support Its Intermediaries and customers. Our biggest current challenge is driven by the industry wide problem of being unable to obtain physical valuations. We have quickly developed measures to enable us to do more of our lending using AVM models and we are now able to progress many applications on this basis. Unfortunately, it is not possible to use AVMs on high LTV applications and as a result, we are withdrawing all products in excess of 80% LTV as from 29th April. We will relaunch higher LTV products as soon as we see any possibility of physical valuations being able to recommence and we are hopeful this activity may be included in any initial easing of the lockdown.
In order to prioritise our efforts, we are currently only accepting full applications which we are able to progress to conclusion via desktop valuations, which means up to a maximum of 75% on residential applications, max. loan size of £300k; 65% on BTL remortgages, max. £200k; and 60% on BTL purchases, max £200k.
We still remain “open for business” on a DIP basis across our lending range including Buy to let, Holiday lets, Buy for Uni, Self-build and Later Life Lending. Our intention is to continue to help and support Intermediaries with your early pipeline enquiries so that we are all prepared to accept applications as soon as the restrictions on physical valuations are lifted.
We’ll still bring that personal case by case approach to our discussions and whilst none of us know when the current restrictions will be lifted, we believe taking these measures now will ensure we can maintain as much as possible a business as usual approach to support Intermediaries through these challenging times. Thankfully we have all our team available to discuss any enquiries. Please call us on 0161 429 4327.
When the Covid-19 outbreak in the UK turned from theory to reality our FD instructed our finance team to ensure we paid all our invoices on the day of receipt so we could support all our partners. We realise cash flow is important and will make sure any “proc. fees” are paid on time.
Clients With Money Worries (last updated April 29th)
Supporting our customers through challenging times is nothing new to us and there are many ways we can assist your clients by carefully understanding their individual needs and challenges, especially in these highly unusual times.
We have been supporting many of our mortgage customers including those who have recently enquired about the 3 month mortgage payment holiday recently announced by the government and supported by most mortgage lenders. This is an agreed break from mortgage payments that will not affect your clients’ credit rating. You should note that interest will still be charged and their monthly payment will be higher when they recommence payments. Currently we are answering calls relating to this initiative the same day and providing agreement within less than 48 hours. We can also discuss a range of other options that might deliver more appropriate medium term support.