HSBC will accept professional consultant’s certificates as warranties for new build homes in a change to its current criteria rules.
The bank says it will now accept these certificates for “newly built homes within a development of no more than 10 properties,” from 4 December.
It adds: “If the property is a flat or maisonette, a professional consultant’s certificate must be available for the common parts and the structure of the building if these are part of the new build/conversion works.
“The conveyancer will continue to ensure that the new home warranty (professional consultant’s certificate or structural defects warranty) meets the criteria confirmed in the UK Finance Mortgage Lenders Handbook.”
Professional consultants are typically architects engineers or surveyors who hold professional memberships.
John Charcol mortgage technical manager Nicholas Mendes says: “Another positive tweak to HSBC criteria that allows for professional consultant’s certificate to be acceptable for newly built homes within a development of no more than 10 properties.
“Several high street lenders already accept PCC such as Santander, Halifax, NatWest, Barclays, TSB and Nationwide.
HSBC’s latest move brings the bank in line with the market, and follows a change earlier in the year [in August] when HSBC extended its maximum mortgage term to 40 [from 35] years.”
