Paradigm Mortgage Service has produced a new lender checklist, or matrix, outlining the approach of lenders to search indemnity insurance as the deadline for the stamp duty holiday approaches amid the pandemic.

The Birmingham-based mortgage club says the matrix is available to view on its website and contains information on which lenders on Paradigm’s panel currently accept search indemnity insurance for purchase and remortgage business.

The move comes amid delays in the provision of local authority searches.  As a result of changing working practices caused by the pandemic and the increase in demand brought about by rising housing transactions, the length of time it takes to receive search information is growing across a large number of councils.

The club says: “In the lead-up to the end of March deadline for the stamp duty holiday, a growing number of lenders are now accepting search indemnity insurance in order to help cases progress through to completion in a quicker timescale, allowing purchasers to benefit from the stamp duty saving.”

Paradigm Mortgage Services mortgage technical director Christine Newell adds: “A growing number of lenders are either reviewing their acceptance of search indemnity policies or are already accepting them, in light of the growing delays within many Local Authority’s search departments. Each lender however also has different policies and expectations in place, and this new Paradigm lender matrix not only outlines the approach taken but provides further detail for advisers to utilise in order to progress their cases.”

Newell continues: “The expectation is that the next few months, in particular, will be incredibly busy and we believe all advisers will benefit from access to this information in one place which is why we have made the matrix available to all. We will update this regularly and hope advisers’ ability to see this information will help them in moving their cases through the pipeline more quickly.”

Earlier this month, the Intermediary Mortgage Lenders Association called on the government for the extension, or phased withdrawal, of the stamp duty holiday, which saw mortgage applications spike in the second half of 2020.