Kensington Mortgages have changed their policy when it comes to lending on new build properties where the property does not have the benefit of a new home warranty scheme. Up until today the lender would not lend on new build properties not subject to an acceptable scheme.
Kensington have changed their CML Handbook requirements which now advises their conveyancing panel that they will lend if the building work has the benefit of a Professional Consultant's Certificate. The building work must have been monitored by a qualified architect and/ or surveyor ("relevant professional") with adequate professional indemnity insurance and the requirements specified in 6.7.4, 6.7.5 and 6.7.6 of Part 1 of the CML Handbook must be met. Kensington Mortgages will require the Professional Consultant's certificate which appears at Appendix 1 of the CML Handbook together to be completed and signed by the Relevant Professional prior to Completion.
To see the change in full click here
In the meantime, mortgage brokers have reacted with shock to the level of detail required in Kensington Mortgages’ new household expenditure form, which has been added to the specialist lender’s application process ahead of the Mortgage Market Review in April.
Kensington Mortgages emailed brokers earlier this month with details of its new mortgage application process, which includes an additional data requirements form and household monthly living expenditure form.
Now that lenders will be responsible for affordability under the rules of MMR instead of the broker it will be interesting to see how other lenders react with their own affordability criteria. now that Kensington have shown their hand. Brokers warn that the new requirements as laid out by Kensington may be difficult for borrowers to deal with.
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