Historical article: This article records changes made to the CML Handbook during October 2016. The Council of Mortgage Lenders subsequently became part of UK Finance, and the resource is now known as the UK Finance Mortgage Lenders’ Handbook. This article should not be relied upon as a statement of any lender’s current requirements.
October 2016 was an exceptionally busy month for changes to mortgage lenders’ individual Part 2 conveyancing requirements.
During the month, 31 lenders amended a total of 159 CML Handbook sections. This compared with 10 lenders making changes during October 2015, 17 during October 2014 and 24 during October 2013.
The figures provide a useful contemporary record of how frequently lender-specific instructions could change—and why the requirements available today cannot automatically establish what a conveyancer was instructed to do in 2016.
Which CML Handbook sections changed most frequently?
The ten most frequently amended questions during October 2016 were:
| Number of changes | Handbook section | Subject of the question in 2016 |
|---|---|---|
| 13 | 6.7.1 | Acceptable new-home warranty schemes |
| 10 | 5.1.1 | Contact point where the seller had owned the property for less than six months |
| 4 | 5.14.1 | Minimum acceptable unexpired lease term |
| 3 | 6.6.4 | Houses in multiple occupation |
| 2 | 5.4.4 | Environmental and contaminated-land reports |
| 2 | 14.2.1 | Destination for title deeds and documents |
| 2 | 14.2.2 | Documents required after completion |
| 2 | 14.1.5 | Whether original mortgage and title documents had to be sent to the lender |
| 2 | 6.6.1 | Contact point for let or proposed buy-to-let properties |
| 2 | 5.8.5 | Cross-owned freeholds involving two leasehold flats |
The numbering and wording above record the Handbook structure used in October 2016. They should not be assumed to correspond precisely with the current Handbook.
Notable lender changes during October 2016
Among the more notable lender updates recorded during the month were:
| Lender | Historical version reference | Date recorded |
|---|---|---|
| Birmingham Midshires | v.2016 No.518 | 24 October 2016 |
| Halifax | v.2016 No.521 | 24 October 2016 |
| Allied Irish Bank (GB), a trading name of AIB Group (UK) | v.2016 No.510 | 20 October 2016 |
| The Mortgage Works | v.2016 No.509 | 18 October 2016 |
| Coventry Building Society | v.2016 No.492 | 7 October 2016 |
Other mortgage lenders that amended their requirements
Other lender records showing changes during October 2016 included:
- Adam & Company;
- Bank of Cyprus UK;
- Bank of Ireland (UK) plc;
- Bank of Ireland as Bank of Ireland Mortgages;
- Bank of Scotland records identified at the time under separate alphabetical entries;
- Coutts;
- Coutts Finance Co;
- Darlington Building Society;
- Godiva Mortgages Ltd;
- Hampden & Co plc;
- HSBC Bank plc;
- Intelligent Finance;
- ITL Mortgages;
- Leeds Building Society;
- Lloyds Bank plc records identified by historical prefix;
- Lloyds TSB Scotland plc;
- Loughborough Building Society;
- Monmouthshire Building Society;
- Nationwide Building Society;
- Precise Mortgages;
- The Mortgage Business;
- Tipton & Coseley Building Society;
- TSB Bank plc; and
- Vida Homeloans.
The separate Bank of Ireland entries in this historical list demonstrate why the precise lender identity matters. Borrowers should check the lender named in the mortgage documents and confirm that their chosen firm can act under the applicable instructions. See our Bank of Ireland conveyancing-panel guide.
Some lender names and records have subsequently changed, merged or ceased to be presented in the same way. When investigating an old transaction, the lender identity appearing in the contemporaneous mortgage offer and charge should be used rather than assuming that a modern brand name is interchangeable.
Why do these historical Handbook changes matter?
The October 2016 figures show how unreliable it can be to assess an old conveyancing transaction solely by reference to today’s lender requirements.
A lender may have changed:
- the minimum lease term it would accept;
- whether a particular title problem had to be reported;
- the evidence required for a new-build warranty;
- its treatment of environmental risks or contaminated land;
- its requirements concerning recently acquired property;
- the documents required following completion; or
- the process for obtaining a lender decision.
A current Part 2 answer does not establish what the lender required in October 2016. Equally, the existence of an earlier requirement does not establish that it was breached: the conveyancing file may show that the matter was identified, reported and accepted.
How should an earlier transaction be investigated?
An investigation into a 2016 transaction may need to consider:
- the lender and precise lender record named in the mortgage documents;
- the jurisdiction in which the property is situated;
- the relevant date or dates;
- the applicable general CML Handbook instructions;
- the lender’s Part 2 requirements at the time;
- the mortgage offer and any special conditions;
- correspondence with the lender or its valuer;
- the certificate of title; and
- the advice and evidence retained on the conveyancing file.
For a fuller explanation of the historical evidence problem, read UK Finance Does Not Keep Old Part 2 Records: How Do You Check What a Lender Required?
What did the lender require at the time?
Historical lender requirements should be checked against the relevant lender, jurisdiction and transaction date—not reconstructed from today’s Handbook wording.
Monitoring current lender changes
Historical research and current monitoring serve different purposes. For live transactions, conveyancing firms need an effective process for identifying changes as lenders publish them.
The LENDERmonitor alert service notifies conveyancers when selected lenders amend their requirements. Firms should consider whether each material change requires an amendment to checklists, workflows, reports on title, training or lender-related policies.
This article provides general historical information and is not legal advice. About Conveyancing and Lexsure are independent of UK Finance and the lenders mentioned. Historical Handbook wording is only one part of the evidence relevant to a completed conveyancing transaction and does not, without further investigation, establish compliance, negligence, liability or loss.
Leave a Reply