Leeds Building Society has widened the range of warranties it accepts on new homes after getting feedback from small developers.
The society promoted the change as just another way it is helping the new build sector after increasing the maximum loan-to-value on new homes up to 90% loan-to-value on houses and 85% LTV on flats.
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.”
The society will now accept warranties on new properties and conversations in the past 10 years from: Advantage HCI, Build Assure, Building Life Plan (BLP), Build Zone, Castle 10 (sometimes called Checkmate), CRL 10 Year Structural Defects Insurance Policy, Global Home Warranties 10 Year Structural Defects Insurance Policy, NHBC (National House Building Council), ICW (International Construction Warranties), LABC, Premier, Protek, Q Policy and Zurich Municipal Scheme (for cover issued up to 30 September 2009)
Other previous changes from Leeds include creating a new build underwriting team, introducing criteria to supporting modern methods of construction and ensuring offers and valuations are valid for six months.