Lender Reporting

oah276

Hi All,

We are in the process of buying a property we had a mortgage offer and we are at the final stages. During the process we discovered Japanese knotweed at the property. The seller has since paid for an insurance backed treatment plan with a guaranty. 

These have been provided to the solicitor who have reported this to the lender. What typically happens during the reporting process? 

The knotweed is category 4 and I read today that lender we are using Accord Mortgages, say that for category 3 and 4 they would retain the mortgage until first stage of works has been completed. But my question is can these policies be flexible or do lenders always stick to them? The treatment is seasonal and does not start until January 2022. Would this impact things even if the plan is in place and there is evidence it has been paid for and is due to start and there is insurance? I am quite stressed about this and would really appreciate any insight anyone can offer from their experiences. 

canaldumidi

I believe once lenders have established an internal policy they tend to stick to it - otherwise why have a policy?

oah276

Thanks so based on that it’s fair to say they will retain the mortgage in this instance?

oah276

Anyone have any other thoughts please?

Thrugelmir

Individual circumstances do differ. A response from Accord should be forthcoming very shortly. Lending policies are set at high level there within the organisation there's no discretion further down the internal chain.  

oah276

@Thrugelmir am not sure I understand what you mean? Are you saying there’s no discretion so therefore they would not consider individual circumstances?

Tiglet2

oah276 said:

@Thrugelmir am not sure I understand what you mean? Are you saying there’s no discretion so therefore they would not consider individual circumstances?

All lenders will have criteria on what they will lend on or not.  It is unlikely that they will consider individual circumstances, otherwise what's the point in setting out their criteria?

I found this from Accord (bear in mind that lenders do update their criteria from time to time): 

Category 3 or 4 - Specialist Report required including details of treatment plan. Condition to be on the offer. Full retention to be held until the first part of the works completed. Category 1 or 2 - should be on the offer drawing the applicant’s attention to the valuer’s comments.

Thrugelmir

oah276 said:

@Thrugelmir am not sure I understand what you mean? Are you saying there’s no discretion so therefore they would not consider individual circumstances?

The circumstances of each case will be considered. However there'll be a clearly defined internal policy as the course of action to be followed. 

oah276

So based on what I described, it would appear they will retain the full offer?

csgohan4

oah276 said:

So based on what I described, it would appear they will retain the full offer?

oah276 said:

So based on what I described, it would appear they will retain the full offer?

Depends, only the lender/underwriters will know, every lender have their own criteria and therefore risk appetite. We cannot provide reassurance, only your lender can

oah276

@csgohan4 the knotweed on the property is category 4 for which they need the first phase of the plan to have been completed as per their policy. The plan is in place but the first phase does not start till January 2022, based on their criteria they are likely to retain the more yet until after that period, or can there be some flexibility? Is what am wondering.