Following the government’s announcement on restricting physical property valuations to enable social distancing and help prevent the spread of Covid-19, Yorkshire Building Society’s valuers are currently unable to visit properties and carry out physical inspections.
The Society has updated its valuation policy to reflect this and made the following changes to ensure that new applications can be processed as promptly as possible to provide the best possible service to brokers and customers.
From Monday 30th March, using either desktop valuation or an automated valuation model (AVM), the Society will continue to lend on:
Residential purchases, where the maximum loan-to-value (LTV) is 75% or below
Residential re-mortgages, where the maximum LTV is 85% or below
Whilst social distancing measures remain in place, it won’t be possible for valuers to physically inspect properties. This means for the time being, the Society will be unable to lend on the following properties:
Properties in Northern Ireland
Non-standard methods of construction
Properties valued at more than £1m
Yorkshire Building Society will look to apply the same rules to its pipeline cases to progress as many of these as possible. Pipeline cases where it cannot use desktop valuations or AVMs will remain in the pipeline until a physical valuation can be carried out. The Society will be in contact with customers/brokers shortly to let them know whether it can proceed with their application.
Chris Irwin, Director of Trading at Yorkshire Building Society, said:
In light of the restrictions on valuations, we have reviewed our policies to enable us to continue lending, where an alternative to a physical valuation can take place.
We hope these new guidelines will give clarity to both new customers and those with applications in the pipeline and allow our underwriting teams to progress the cases which fall within the guidelines as quickly as possible.
Applications in Scotland
Following guidance issued by UK Finance, the Law Society of Scotland and Register of Scotland, along with advice received from the Society’s own Scottish legal advisers, the Society can confirm that Scottish completions will continue to take place.
Standard Variable Rate (SVR)
Yorkshire Building Society has reduced its SVR by 0.50% for existing customers to 4.49% from Sunday 19 April.
The Society is contacting customers to explain how any changes will affect their monthly repayments on their mortgages. Any customers affected by this decision have a choice of what they would like to do next and the Society is ready to help them, should they need it.