LendInvest halts second charge lending

Hand stop shown by businessman.

LendInvest has paused second charge lending due to Brexit uncertainty.

The lender says it will honour its existing pipeline of deals, and that no cases have been dropped or cancelled due to Brexit.

LendInvest director Ian Thomas says: “Our message today is that LendInvest remains very much open for business.

“Our decision to tighten lending criteria for higher value cases and pause new second charge loans reflects industry caution after the market shock of last week. Until more data becomes available about prime sales in the new market environment, redefining our lending criteria is the most responsible and prudent course of action.

“LendInvest will carry on lending and we expect to remain busy in the months to come. This is the sort of major event that we have built LendInvest to be able to withstand. We are very well-capitalised and have a well-diversified funding base, from which to continue to lend and service loans.”

A statement from the lender says it will also cap LTV at 65 per cent for deals of more than £3m.

The online specialist property finance lender will continue to lend on open market valuations and has not changed its published interest rates.