What Building Warranties Are Accepted by UK Mortgage Lenders?
Mortgage lenders will only lend on a newly built, converted or renovated home if it is covered by a structural warranty from an approved provider. The definitive list of acceptable providers is kept by UK Finance, formerly the Council of Mortgage Lenders, although each lender also keeps its own list.
ICW Group explains that its warranties are accepted by the major mortgage lenders, including HSBC, Barclays, Lloyds Banking Group (including Halifax), NatWest Group, Nationwide and Santander, as well as by many specialist lenders.
The firm highlights two points for buyers and developers to keep in mind. First, lender requirements can change, so it is worth checking the UK Finance Mortgage Lenders' Handbook for the particular lender involved. Second, lenders generally also expect the builder or developer to belong to a consumer code approved by the Chartered Trading Standards Institute, such as the ICW Consumer Code for New Homes. These codes set standards of conduct for builders and developers and give homebuyers extra protection during the purchase of a new home.
