Coventry Building Society’s updated Part 2 wording expressly addresses existing equitable charges relating to affordable housing on remortgage properties, including Help to Buy Equity Loan schemes.
For conveyancers, the practical point is to identify the arrangement behind the charge and establish whether it will remain after completion. A remortgage should not progress on the assumption that an existing equity loan is acceptable merely because another lender previously lent on the property.
What does the updated wording say?
Section 5.19.1a asks:
If different from 1.11, contact point for lending on affordable housing, shared equity and shared ownership and where relevant your requirements
The updated wording supplied for the 20 October 2026 change reads:
CBS does not lend in any of these circumstances. To include any existing equitable charge relating to affordable housing on a re-mortgage property for example but not exclusive to Help to Buy Equity Loan Schemes
The reference to Help to Buy is an example, rather than an exhaustive list. The wording also concerns other existing equitable charges relating to affordable housing.
The remortgage needs more than a first-mortgage redemption figure
A borrower may describe the transaction simply as moving their mortgage to Coventry. The title and funding arrangements may reveal a separate equity loan or other affordable-housing interest that needs investigation.
The conveyancer should establish:
- what affordable-housing or equity-loan arrangement exists;
- the identity of the party holding the relevant interest;
- the documents creating and securing that interest;
- whether the borrower proposes to retain it or repay it;
- whether repayment would be complete or partial;
- what consent, repayment and discharge arrangements are required; and
- whether the proposed transaction complies with Coventry’s instructions and mortgage offer.
The investigation should consider the underlying documents and borrower’s information alongside the register. A familiar scheme name is not a substitute for establishing the legal and financial arrangements.
Retaining the equity loan and repaying it are different proposals
A remortgage that leaves an affordable-housing charge in place raises a different question from a transaction intended to repay the equity loan in full.
However, the quoted wording should not be treated as automatic approval for the second arrangement. If repayment and discharge are proposed, obtain confirmation of Coventry’s requirements for that particular transaction before proceeding on an assumption.
Where instructions or the mortgage offer appear inconsistent with the facts, identify the issue precisely and seek clarification through the appropriate reporting route.
A mortgage offer should not be treated as proof that every title arrangement has already been considered. Equally, reporting an issue does not itself provide authority to proceed.
Our article on why a lender portal acknowledgement is not approval explains the importance of distinguishing receipt of a report from the decision the firm needs.
Help to Buy repayment has its own process
For an English Help to Buy: Equity Loan, repayment involves more than paying the original amount borrowed. Homes England’s process includes valuation, repayment documentation and completion requirements.
The government’s guidance on repaying an equity loan when remortgaging explains the steps for full or partial repayment. That guidance concerns the English scheme; other schemes require their own investigation.
The scheme administrator’s requirements and Coventry’s lending instructions answer different questions. Satisfying one does not establish compliance with the other.
Conveyancers should therefore establish the proposed repayment route early, including the funds available, the documents required and any dependencies affecting completion.
Shared ownership and shared equity should not be confused
The Handbook question covers affordable housing, shared equity and shared ownership. These labels should not be used interchangeably.
A borrower with an equity loan may own the whole property subject to the scheme arrangements. A shared-ownership transaction has a different ownership and lease structure. The conveyancer needs to identify the actual arrangement before deciding which instructions and enquiries apply.
Although the updated answer names Help to Buy Equity Loan schemes, the opening statement addresses the wider circumstances covered by the question.
Review live Coventry remortgage files
Firms handling Coventry matters should consider whether the updated wording affects any live files, particularly those involving an existing equity loan or affordable-housing charge.
A focused review should identify:
- cases where an equity loan is intended to remain;
- cases where repayment is proposed but the arrangements are incomplete;
- files awaiting a lender response;
- matters approaching certification of title or completion; and
- borrowers who need an explanation of an issue affecting their proposed remortgage.
Record the wording checked, the date of the check, any report made and the lender’s substantive response. Follow the applicable instructions when deciding whether the matter can progress.
Why the historical Coventry wording also matters
This update has a separate relevance to earlier transactions.
When reviewing an older remortgage, complaint or alleged failure to follow lender instructions, the relevant question is what Coventry required at that time. Today’s wording should not be applied retrospectively without checking the earlier record.
The Lexsure Lender Archive Coventry Building Society page provides a route to historical lender-specific records. Confirm that the relevant date and requirement are covered, then examine the record alongside the mortgage offer, specific instructions and conveyancing file.
Our existing guide to Coventry Building Society’s historical mortgage instructions explains why the lender identity and transaction date matter.
Historical wording can help establish the instruction framework. It does not, by itself, establish what happened on the file or determine negligence, causation or loss.
Which Coventry instructions applied to the transaction?
Investigating an earlier purchase or remortgage? Check Coventry Building Society’s recorded historical requirements for the relevant date.
Check Coventry’s historical instructions →Keep changes visible to the team handling the matter
A lender update needs to reach the people reviewing titles, reporting issues and preparing certificates of title. Awareness should lead to an assessment of affected files and any necessary action.
LENDERmonitor Notifications helps conveyancing firms monitor changes to lender-specific instructions. Notifications support the firm’s checking process; they do not replace examination of the applicable Handbook wording, mortgage offer and individual instructions.
Our article on managing conveyancing risk through completion considers why outstanding conditions and changed circumstances need clear ownership.
This article discusses the Coventry Building Society wording supplied for the 20 October 2026 update. Check the current instructions, applicable jurisdiction and mortgage offer before relying on it for a live matter. It is general information, not advice on an individual mortgage or transaction.