The Leeds Building Society has made changes to its new build criteria by widening the range of warranties it will accept on new homes.
This means a range of warranty schemes, in addition to the NHBC, will be considered as long as they give consumers appropriate protection.
The Leeds said the move was taken in response to feedback from smaller developers.
“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,” said Martese Carton, Leeds Building Society’s head of intermediary distribution.
“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.”
Leeds Building Society has improved its new build proposition, including increasing the loan to value (LTV) on new homes, up to 90% on houses and 85% on flats and creating a dedicated new build underwriting team.
It has also introduced specific criteria to support Modern Methods of Construction and ensure offers and valuations are valid for six months.
