Mortgage News
HSBC changes New Home Warranty scheme criteria
HSBC will change its criteria around the New Home Warranty scheme so that professional consultant’s certificate (PCC) will be acceptable warranty for a new build property.
A PCC is a legal document that confirms a project has been completed satisfactorily then reviewed and signed off by a qualified architect or surveyor.
Currently HSBC criteria says that a PCC is not acceptable for a new build property, other than where the property is a conversion and has not had full structural alterations.
According to a broker note, from 4 December, PCCs will be eligible for newly built homes within a development of no more than 10 properties.
The note added that if the property is a flat or maisonette, a PCC needed to be available for the “common parts and the structure of the building” if these are part of the new build/conversion works.
HSBC continued that the conveyancer would need to ensure that the new home warranty, whether a PCC or Structural Defects Warranty, meet the criteria confirmed in the UK Finance Mortgage Lenders Handbook.
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