RAW Capital Partners has updated its credit criteria for new-build homes.
Based on the updated criteria, RAW Capital Partners will no longer apply new construction premium deduction when appraising new-build homes.
Lending will now be based on current market value, with a maximum loan-to-value (LTV) of 65%.
The Guernsey-based specialist lender says the change is designed to provide customers with greater certainty, while also helping to reduce downgrades and, in some cases, supporting higher loan amounts.
The new criteria apply to all new applications and come into effect immediately.
RAW Capital Partners CEO Tim Parkes said: “This change is designed to give brokers and borrowers greater certainty when financing new-build homes.”
“By borrowing at current market value, rather than deducting a new build premium, we can provide a clearer and more consistent result on the amount borrowed. We hope this will better help customers achieve their real estate investment goals.”