COVID-19 – business as usual

As England moves into a second lockdown, we want to reassure you that it’s business as usual at InterBay Commercial, our service remains strong and we’re here to work alongside our intermediary partners to provide suitable solutions for your clients.

For buy to let and HMO/MUFB properties of up to six bedrooms/units full physical inspections for valuations will continue, and shall be conducted through our panel valuers Connells via the usual process, in a COVID-secure manner.

Connells have issued clear guidance surrounding property inspections. If this guidance isn’t adhered to, surveyors could choose not to proceed with a valuation, but still charge a fee for a visit.

For complex buy to let (including HMO/MUFB properties from 7-20 bedrooms/units) and semi-commercial cases, full physical inspections for valuations will continue, and shall be conducted via our in-house panel managers. More information on fee scales and our current valuation protocols can be found here.

This page takes you through the steps we’re taking to support you at this time.

If you have any urgent queries, please email underwritingreferrals@interbayuk.com or contact your local senior business development manager.

In the meantime, here are some frequently asked questions to help you.

Buy to let and semi-commercial criteria

  • We will consider applications from landlords currently in receipt of furlough / SEISS income. Please note top slicing is not currently available.
  • The latest bank statement is required to evidence rent / mortgage payments.
  • Bounce back loans and coronavirus business interruption loans aren't acceptable as a source of deposit.

Please note there maybe additional underwriting requirements. If you have any queries related to your application, please contact your business development manager.

• If you have a buy to let customer looking to take out a payment holiday with us due to the impact of COVID-19, we’re able to support them.

Here’s what your customer needs to know before applying:

• If they're a buy to let customer, they're able to request a mortgage payment holiday but only if their tenants are unable to pay their rent due to COVID-19.

• If they've not already taken a mortgage payment holiday of up to three months, and want to apply for one now, please ask them to email servicing@interbayuk.com providing no personal details other than the mortgage account number. We'll then contact them within 5-7 working days to confirm whether they've been accepted. If they've already submitted an email, they don't need to submit a form as well. We'll process their request for a mortgage payment holiday in the same way.

• If they take a mortgage payment holiday, this means that they won't make mortgage payments for up to three months; we'll add these payments onto their mortgage balance unless they contact us before their payments recommence to discuss alternative options for repaying the unpaid mortgage payments.

• As a result, their mortgage balance will increase and their monthly payment will be recalculated over their remaining mortgage term. Their monthly payment and the amount of interest they pay will increase for the remaining term of their mortgage.

• We'll let them know their new monthly amount at the end of their payment holiday.

• Unfortunately we're unable to make any changes in time for payments due in the next 7 days. If their payment is due in the next 7 days and they're unable to make their normal monthly payment, please call our Collections Team on 03459 003300. They can also email recoveries@interbayuk.com to discuss their situation.

• In line with government guidance, their credit rating won't be affected by this arrangement whilst the payment holiday is in place.

• Please note that if they’ve already emailed us, we’ll respond as soon as we can.

• If your customer has a commercial or semi-commercial mortgage and is facing difficulty, please be aware that the three month payment holiday option published in the UKFI/Govt guidance to Lenders is for residential and buy to let mortgages only, and is not applicable to commercial/semi-commercial mortgages.

• We would urge your customer to visit the government website government website for further information and guidance on the help and support available to employers, businesses and business owners.

• If the above has been undertaken and your customer still requires assistance then please e-mail recoveries@interbayuk.com

• We may be able to offer your customer support in these circumstances, so you should call us on 03459 003300 or email recoveries@interbayuk.com to discuss what options there are available.

• If your customer is already in arrears or has alternative forbearance options in place, call us on 03459 003300 or email recoveries@interbayuk.com to discuss the options available.

• If your customer takes a mortgage payment holiday, this means that they won't make mortgage payments for up to three months; we'll add these payments onto their mortgage balance unless they contact us before their payments recommence to discuss alternative options for repaying the unpaid mortgage payments.

• As a result, their mortgage balance will increase and their monthly payment will be recalculated over their remaining mortgage term. Their monthly payment and the amount of interest they pay will increase for the remaining term of their mortgage.

• We'll let your customer know their new monthly amount at the end of their payment holiday.

• Whilst the status of a mortgage payment holiday is not reported negatively to the Credit Reference Agencies, we don’t know how other lenders may use this information when making future lending decisions. For example, they may take into account other information including payment information provided by your customer or bank account information.

• If a buy to let customer takes a mortgage payment holiday it's important to understand that the interest will continue to accrue while they're not making their normal monthly payments. At the end of the payment holiday period the interest that has built up will be added to their outstanding mortgage balance. This process is called capitalisation.

• By capitalising the accrued interest, their outstanding mortgage balance will increase. We'll have to recalculate their monthly mortgage payment so that their mortgage will be repaid in full at the end of their mortgage term and as a result, they'll pay more interest over the remaining term of their mortgage.

• If they'd rather make alternative arrangements to repay the capitalised amount please call a member of our Collections Team on 03459 003300.

• We'd expect the monthly payments covered by the payment holiday to be taken together, but we'll review individual cases where circumstances require a different approach to be taken.

• It’s important to remember, only a payment holiday of up to three months can be agreed under the current Government scheme, and any further period of time required will be subject to our standard forbearance processes and may affect your customer's credit rating.

• Whilst the status of a mortgage payment holiday is not reported negatively to the Credit Reference Agencies, we don’t know how other lenders may use this information when making future lending decisions. For example, they may take into account other information including payment information provided by your customer or bank account information.

• If your buy to let customer has arranged a payment holiday but they now no longer need it that's no problem. Please send us an email at recoveries@interbayuk.com to confirm that they no longer require the payment holiday. We'll then confirm that we've received their request and explain how much their next monthly payment will be and when it's due.

• If your buy to let customer is concerned about their ability to make future mortgage payments we may be able to consider further forbearance which may include an extension to payment holiday periods.

• As the guidance in place from the Government is changing daily, requesting an extension to a current payment holiday too soon may not be the right thing for your customer to do. If they believe they’re going to experience ongoing financial difficulties, please don’t contact us until the last month of their current payment holiday. This will help us to prioritise dealing with customers who have imminent need of further assistance.

• Please ask your customer to contact us on 03459 003300 or email recoveries@interbayuk.com so we can discuss the best options with them.

• If your customer is concerned that their ability to make future mortgage payments will be affected please get in touch with us as soon as possible.

• If a customer takes a COVID-19 related payment holiday it shouldn’t stop them getting a product transfer in the future if they otherwise would have qualified for one.

• If you currently have a case in progress where the valuation fees have been paid and the case fits our new criteria, we'll proceed with your application.

• If you've cancelled an application and have either not paid the fees or have had them refunded, you'll need to re-submit an application with a product from our new range.

• To ensure all post valuation cases are processed as quickly as possible, please do not call us as a member of our underwriting team will be in touch shortly.

• We ask that if you have any urgent queries, you contact your BDM in the first instance.

• A member of our underwriting team will be in touch shortly. If you have any urgent queries you can contact your local BDM.

• If you’ve already submitted an application that is at pre-offer stage and the case satisfies the criteria restrictions that are currently in place, we may be able to switch your case to a new product and continue processing. If, after you’ve discussed suitability with your customer, you consider the product is appropriate, we’ll switch your application to a new product and request any outstanding documentation, which you should provide as soon as possible. If there are no Valuation Fees or Assessment Fees, we’ll refund the fees that have been paid.

• If you have a pipeline application that is over the maximum LTV acceptable on our new product ranges and your customer would like to reduce their loan amount to enable switching onto a new product, please contact us on underwritingreferrals@interbayuk.com and we’ll be happy to help. For further details of the maximum LTV limits, please refer to the relevant product guide.

• If the case doesn’t meet the criteria restrictions that apply on our new product ranges then it will remain on hold for the time being and we’ll let you know when we can start processing the case. If you wish to cancel the application, please contact us by email at Servicing@interbayuk.com quoting your application number.

• Valuation and Assessment Fees will be refunded if the case is cancelled and the valuation hasn’t been completed and should you wish to re-apply in the future a new application will be required.

• Cases where the valuation has not been carried out, the broker needs to email underwritingreferrals@interbayuk.com quoting the account number and asking for the application to be cancelled and the fee refunded.

  • For semi-commercial cases, full physical inspections for valuations will continue, and shall be conducted via our in-house panel managers.
  • For buy to let and HMO/MUFB properties of up to six bedrooms/units, full physical inspections for valuations will continue, and shall be conducted through our panel valuers Connells via the usual process, in a COVID-secure manner.

Connells has issued clear guidance surrounding property inspections. If this guidance isn't adhered to, surveyors could choose not to proceed with a valuation, but still charge a fee for a visit.

For complex buy to let (including HMO/MUFB properties from 7-20 bedrooms/units), full physical inspections for valuations will continue, and shall be conducted via our in-house panel managers.

Please note Our investment method will be used for long-form valuations. More information on fee scales and our current valuation protocols can be found here.

• Due to the ongoing, situation we cannot guarantee our usual business turnaround times for physical valuation reports. We ask that you continue to bear with us during this time.

• Please note that our response times will take longer than normal due to the high volumes of enquiries we're receiving.

• We'll put the case on hold for the time being and will let you know when we can start processing the case. If you wish to cancel the application, please email us at underwritingreferrals@interbay.co.uk. Please note that our response times will take longer than normal due to the high volumes of enquiries we are receiving.

• Yes, we will complete on cases that are offered, subject to our normal terms and conditions. However, we require the Bank's solicitor to confirm that your borrowers personal or financial circumstances have not changed since the date of the mortgage application. If they have, the underwriter will re-assess the case and we could exercise our right to withdraw the offer.

• Any request for an offer extension will be reviewed on a case by case basis. Please email underwritingreferrals@interbayuk.com with any requests. Please provide an anticipated completion date and the reason for the extension request.

• As a regulated firm, we're governed by Anti-Money Laundering legislation and therefore our scope to change is restricted. In order to meet this legislation requirement, either Kent Reliance for Intermediaries or an authorised partner must see the original identification document prior to entering into the relationship.

• However, in response to the COVID-19 situation, on a temporary basis to assist our intermediary partners and your customers, we'll now accept the following documents uncertified:

• Passport
A ‘clear’ photograph of the passport which must also be accompanied with a ‘selfie’ photograph of the holder.

• Driving Licence
A ‘clear’ photograph of the licence which must also be accompanied with a ‘selfie’ photograph of the holder.

• In addition the applicant is required to use gov.uk/view-driving-licence & provide a code where the Driving licence can be validated.

• We constantly review our rates throughout the year as a matter of course.

• We'll inform of any rate or product changes as per normal.

• We’re currently receiving a large number of enquiries from brokers and customers, and we’re endeavouring to respond to emails and calls as soon as practically possible.

• We appreciate your patience and understanding at this time.

FAQs

We cater for the needs of a wide variety of businesses and entrepreneurs, including: individuals, limited companies, limited liability partnerships (LLPs), self-invested personal pensions (SIPPs), small self-administered schemes (SSAS) and trusts. Individuals: When lending to individuals, our standard conditions apply and are dependent on the status of the applicant (i.e. employed, self-employed, owner occupier or investor). Note: Loans are available: for applicants acting solely within their trade, business or profession, and when the purpose of loan solely relates to such trade, business or profession Limited companies: For limited company applications, the majority shareholders must be party to the application. They will be required to provide a full personal guarantee. Limited companies registered outside of England or Wales will be considered on a case-by-case basis. Limited liability partnerships: These will be treated much the same as limited companies. Self-invested personal pensions and small self-administered schemes: We’ll need to carry out due diligence on the pension scheme and the commercial tenant. Trusts: A copy of the trust deed will always be required.

There are occasions when we will require a meeting. This tends to be in cases where our loan exposure to the applicant exceeds £3,000,000. These face-to-face meetings happen prior to issuing a Formal Offer.

The ICR is the calculation we use to determine that the loan is affordable on an investment basis and that the market rent determined by the valuer provides adequate cover for the loan repayments. We expect cover to 125%-160% of the interest-only payment, depending on the property type and whether or not we are lending to a limited company. For full details please see the individual product pages.

Strictly speaking, we do not have limits on concentration. However, we may seek to either limit the LTV or load the pay rate to reflect the concentration risk.

Gifted deposits will be considered but only where the gifted deposit is from an immediate family member e.g. parents, siblings and/or grandparents.

Yes, subject to certain restrictions.

InterBay will allow Gold Key Partners to operate as a packager for straight forward Buy to Let business and to submit a fully packaged case for a formal offer.

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This information is for mortgage professionals only and not intended for use by the general public. All rates, programmes and pricing are subject to change at any time and without prior notice. Mortgages are subject to valuation and approval.