First Direct and Architects Certificate

Graham159

A few months ago we agreed a mortgage in principle with our bank First Direct. We spent a lot of time provided details, proof of earnings, outgoings but everything was agreed and we were just looking for the right property.

We have now offered on a new build nearing completion with a local small builder with an excellent reputation. The build does not have an NHBC guarantee but is supported by an Architects Certificate and has been supervised by the Architects at 6 stages of the build.

On contacting First Direct they have now informed us that they will not provide a 9% LTV mortgage as it is their policy not to consider Architects Certs. Having been a customer for years and given that this is a really small mortgage this seems ridiculous. But this is policy and no judgement is devolved to local level despite HSBC (their parent company) advertising how they ' understand local needs in a global environment!

Fortunately Nationwide, RBS and TSB do accept Architects certs but we need to go through the process of providing proof of earnings again etc and waiting for formal approval.

Due to the housing shortage more people are building and using Architects certs and so this is rather short sighted of First Direct and HSBC. Rather diminishes FDs reputation for giving excellent service.

Thrugelmir

Graham159 wrote: »

Due to the housing shortage more people are building and using Architects certs and so this is rather short sighted of First Direct and HSBC. Rather diminishes FDs reputation for giving excellent service.

Since when do customers tell a business how to run it? They'll be a reason behind the policy.

Senior_Paper_Monitor

I recently did quite a bit of research into this area - apparently with the tacit guidance of the Council of Mortgage Lenders more and more lenders are no longer accepting properties on the basis of 'architect's certificate'.


This is because (unlike the insurance based warranty products) it is subsequently necessary to sue the architect to obtain recompense if it is necessary.


You may find the following interesting reading ....


http://www.cml.org.uk/cml/handbook/englandandwales/question-list/527


You can incidentally purchase a warranty insurance at any point (we have previously used http://www.evo-insurance.com/) but the later in the process this is done the more expensive it tends to be.


I would seriously consider investigating the cost of purchasing the warranty (presumably also negotiating the possibility of the builder contributing all or at least part of the cost) to ensure that any future purchasers (from you) do not meet similar problems (which I would only expect to get more common).