The lender warned that some properties may not be suitable for a remote valuation and therefore it would not be able to lend on them
Barclays has clarified its remote valuation criteria for mortgage lending during the coronavirus restrictions.
The lender warned that despite meeting all the published guidelines, some properties may still not be suitable for a remote valuation and therefore it would not be able to lend on them.
In a communication sent to brokers, the lender said it was essential they check the automated valuation model (AVM) status and remote valuation eligibility where an AVM has been unsuccessful, prior to submitting a client’s application.
Unsuccessful submitted applications will be removed from processing and brokers notified.
Where an existing received application is reliant on a remote valuation, but either doesn’t meet the eligibility criteria or has been unsuccessful in attaining a remote value for lending purposes, we will be in contact with yourself shortly to advise of next steps and options available, it said.
Applications without a confirmed value for lending won’t be assessed until you have confirmed your clients’ preferred way forward, it said.
Applications for either residential or buy-to-let mortgages must meet three points: the maximum loan to value (LTV), maximum property value and then not being an excluded property type.
Barclays noted it had already been using AVMs for many applications and had widened this to new and existing pipeline applications, “so we can continue to support many of your clients with their mortgage needs at this potentially difficult time, despite not being in a position to value their current or prospective property in person”.
It added: Many mortgage requests will benefit from an AVM and it will be evident within our application system whether your client’s property has received a successful automated assessment.
For those where an AVM isn’t supported and a remote valuation is required, we ask that you check eligibility, and only proceed to submit an application if this criteria is met, it said.