Standard Bank Home Loan Changes to Loan to Value (LTV) Criteria
Further to Standard banks previous changes where they announced the need to revise their LTV criteria for new loan acquisitions, Standard Bank have advised that they have put measures in place to further tighten those loan criteria.
Standard Bank have now made the following changes which will be implemented with effect from 5 October 2008.
The LTV adjustments are:
· R0K to R2.5Mil 95% LTV
· R2.5m to R3.0m 90% LTV
· R3.0Mil and above 80% LTV
Restrictions on Vacant Land remain as they were at 75% for Standard Bank Current Account customers. For non Standard bank Current Account customers the LTV will be 75% for loans less than R1m and 65% for loans greater than R1m.
In addition Further Advances will be restricted to 85% LTV, where they were previous 90%.
Standard Bank have recently communicated that collateral can be supplied in the form of government guarantees and covering bonds to support the deposits required.