"We’re doing what we can as a lender to support developers by strengthening our new build proposition, such as broadening the range of warranties we accept on new build properties."
This means a range of warranty schemes, in addition to the NHBC, will be considered as long as they give consumers appropriate protection.
Leeds Building Society has also increased its maximum new build LTVs to 90% on houses and 85% on flats, created a dedicated new build underwriting team, and introduced specific criteria to support Modern Methods of Construction. Finally, the Society will ensure offers and valuations are valid for six months.
Martese Carton, Leeds Building Society’s Head of Intermediary Distribution, said: “There’s a widely-shared view that increasing housing supply is an absolute priority for the UK, although opinions differ as to how this can be achieved.
“We’re doing what we can as a lender to support developers by strengthening our new build proposition, such as broadening the range of warranties we accept on new build properties.
“The Society reviewed this position after developers raised concerns about warranty costs so we’ve worked with our surveying partner, Countrywide Valuation Services, to identify which warranty schemes provide appropriate consumer protection.
“This means developers can consider alternative warranty schemes without compromising the ability of purchasers to secure a mortgage. We hope the move demonstrates our continued commitment to supporting the new build sector.”
