Retrospective structural defects warranty

Jlsmithg

Does anyone know if RETROSPECTIVE structural defects warranties are broadly acceptable to mortgage lenders? 

Does anyone know if First Direct would accept one? 

We’re having trouble getting a clear answer from First Direct on whether they will accept our CRL/Ark (not Alpha!) SDW and, therefore, are concerned that if we needed to sell within 10 years that our buyer wouldn’t be able to get a mortgage because of it.

K_S

@jlsmithg Generally speaking, most lenders will not accept restrospective structural warranties. There may be alternatives that they accept (such as a professional consultant certificate from the time of the build).

Can't speak for FD as they are a direct only lender but it may be worth checking with HSBC (FD's owner) to see if it's any easier to get a clear answer. In matters like these, their policies are unlikely to diverge significantly.

[Deleted User]

Not sure on FD but HSBC criteria states they do not accept retrospective warranties. 
HSBC do not offer any alternatives to a missing warranty from the time of the build.  Its either done properly or its a no from them.

HSBC UK Bank plc

-  Where the property does not have the benefit of a New Home Warranty      scheme and has been built in the last 10 years then NO we will not proceed.

https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/1919/

There are a very small handful of high street lenders who will take them but it tends to be something more acceptable to the smaller regional building societies. 

decrement

Deleted_User said:

Not sure on FD but HSBC criteria states they do not accept retrospective warranties. 
HSBC do not offer any alternatives to a missing warranty from the time of the build.  Its either done properly or its a no from them.

HSBC UK Bank plc

-  Where the property does not have the benefit of a New Home Warranty      scheme and has been built in the last 10 years then NO we will not proceed.

https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/1919/

There are a very small handful of high street lenders who will take them but it tends to be something more acceptable to the smaller regional building societies. 

I've been tearing my hair with this issue on a property i am trying to buy, i went with NatWest originally based on what's in the handbook as there was a PCC but no warranty. But in the end NatWest rejected the PCC and wouldn't lend on the property.
Warranties and PCC's seem like a lottery with mortgage providers.

Jlsmithg

@decrement it’s very difficult to work out which way they’re going to go. We’ve now had a yes and a no from First Direct about our existing warranty. They can’t seem to decide. That’s why we thought of changing to one that they supposedly will accept. But still not sure on whether a retrospective one that replaces it would be ok.

Jlsmithg

@Deleted_User thanks. To be clear, it’s a replacement rather than it not having one. I assume this is one and the same though. 

decrement

Jlsmithg said:

@decrement it’s very difficult to work out which way they’re going to go. We’ve now had a yes and a no from First Direct about our existing warranty. They can’t seem to decide. That’s why we thought of changing to one that they supposedly will accept. But still not sure on whether a retrospective one that replaces it would be ok.

The added complexity is that lenders change criteria, the one we are trying to buy, NatWest accepted a PCC a few years back for the neighbor. But now they don't when we applied.
I did speak to HSBC, and they were similar to FD it seems, Yes and No.
Barclays didn't seem bothered either way interestingly.

[Deleted User]

Jlsmithg said:

@Deleted_User thanks. To be clear, it’s a replacement rather than it not having one. I assume this is one and the same though. 

The part i mentioned about them not accepting retrospective warranties is from their internal criteria rather than the CML guidance so i couldnt post a link.   HSBC themselves definitely dont take retrospective warranties

mr3zippy

Did you have any luck?
Im trying to get a buy to let mortgage on a new build. There is no NHBC but virgin money said they would accept a PCC. I did inform them that the property was already built. I have the PCC now but they say its retrospective so they wont accept it!! i keep hitting a brick wall and no one seems to lend with this criteria. Any sage advice?