Skip to main content

CML Handbook P2 Changes 2013 - Review At-a-Glance

By
Lenders made 68% more changes to their requirements in 2013 compared to 2012

According to Lexsure’s review, 91% of CML lenders amended their Part II policies last year, with over 1,793 sections changed. This represents a 68% rise in policy change activity compared to 2012.

Some of the more frequent changes focused on the following:

  • Which documents the lender needed to be sent on completion  
  • Whether a lender accepts personal searches and if so, what their requirements are.
  • Disclosure obligations relating to properties where a Green Deal exists or where there are solar panels on the property

On average, a lender in England & Wales changed their Part 2 requirements 3.9 times in 2013, with 91% of all lenders changing requirements at least once in the year

Clearly, when it comes to complying with lender requirements, solicitors cannot assume that what was true in the last transaction is still true in the next. Changes, even once or twice a year, compound when one considers the myriad of lenders. The numbers show that vigilance is key.

Key government or regulatory initiatives result in a flurry of requirement changes

The introduction in July 2013 of new requirements as to whether the lender needs to be informed of a Green Deal on properties tripled the volume of Part 2 changes in just one month. A similar impact was seen a year earlier when requirements were introduced to report on energy technologies installed on residential properties

Requirement changes for mortgages on properties in England and Wales doubled last year

With the recovery of the property market, lenders are being hyper-cautious in their mortgage lending processes. Having been burned in the global financial crisis of 2008, they are acting to strengthen their positions with more cautious policies.

Lenders are wary of non-standard properties

The trend is for lenders to be more picky with premises they will lend on, avoiding anything remotely controversial. This continued with dozens of lenders restricting their policies relating to flying freehold, Houses in Multiple Occupation, properties with solar panels, freehold flats, and leasehold properties with short leases.

Labels:

Comments

Post a Comment

Popular posts from this blog

FCA AML Audit: Financial Regulator Takes Over Legal Oversight!

By
The UK government has dropped a regulatory bombshell that will fundamentally reshape your life, and yes, we are talking about the dreaded FCA AML audit. For years, you’ve been supervised by your legal peers, the SRA, but those days of relative comfort are drawing to a close. The big news? Responsibility for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) supervision for the legal and accountancy sectors is being handed over to the Financial Conduct Authority (FCA. That's right, the same folks who put the fear of God into the big banks are now coming for your conveyancing files. Cue the dramatic music. What does the FCA take-over actually mean? Forget the gentle nudge; prepare for the financial services full-body search. An FCA AML audit is likely to look a lot more like a detailed financial inspection and a lot less like a polite chat with the SRA. Think maximum emphasison: Ironclad AML documentation (no more "it's in my head" polici...
Post a Comment
Read more

December 2025: The SRA’s AML Audit Crackdown Has Arrived

By
The Solicitors Regulation Authority (SRA) isn't sending Christmas cards this year. They're sending in the AML auditors. Despite the upcoming shift where the FCA will assume wider AML regulatory oversight, the Solicitors Regulation Authority (SRA) is turning up the heat one last time. Forget a gentle warning—welcome to the AML Blitz of December 2025 . Let’s cut to the chase. SRA Chief Executive Paul Philip is clearly done with excuses. His public message is unambiguous: "We are still finding fairly basic deficiencies in AML arrangements within firms." Translation for the Partners: You might effortlessly navigate a complex, multi-million-pound merger, but somehow, you still haven't nailed your fundamental firm-wide risk assessment. The era of the gentle wrist-slap is officially over. The SRA has made it clear that fines are "continually going up." AML Compliance is no longer a 'nice-to-have'—it’s an expensive, enforced reality...
Post a Comment
Read more

FCA AML Audit: Why Solicitors Time to Rethink AML Compliance

By
If you’re a partner or a compliance officer at a law firm, I want you to take a quick second and think about your last AML review. Was it a check the box exercise to keep the SRA happy? If the answer is yes, we need to have a serious chat. The regulatory landscape for solicitors is shifting fast . The Financial Conduct Authority (FCA) is stepping onto the field with a much more active role, and they play a much tougher game than we've seen in the past. Today, we’re breaking down why the FCA AML Audit is the new essential safeguard—and why "good enough" policies just won't cut it anymore. Why the "Old Way" of AML is Riskier Than Ever Historically, many of us approached AML compliance through a traditional SRA lens. But let’s be real: that approach is becoming a major liability. The FCA’s style is risk-based, evidence-focused, and—most importantly outcome-driven. They don’t just want to see your manual; they want to see your proof. ...
Post a Comment
Read more