Following my recent blog, New Build Conveyancing in Turmoil – as Lenders Make Tens of Thousands of Properties Unmortgageable, two more lenders have declared that they will no longer accept Zurich Insurance as a new build warranty.
Earlier this week, Norwich and Peterborough Building Society and Astra Mortgages removed Zurich from their list of acceptable warranty schemes, effectively telling conveyancers (and therefore the public) that a property built within the last 10 years, with a Zurich backed guarantee insurance, is no longer acceptable for lending purposes. This will affect remortgages as well as new build conveyancing.
My sources indicate that Zurich will be contacting these lenders to see if they really do intend to take them off their list of acceptable warranty schemes.
Gloucester Trading Standards, which levied the fines, stated:
“By not providing the information required, the decision-making ability of the consumer is restricted. Also, those relatively few estate agents who do not provide this information may be obtaining an advantage over the majority who do comply with the law. In issuing these penalties, we are trying to ensure a fair deal for estate agents and purchasers alike, while sending out a clear message that we will act against activities which do not meet the standards of decent business. ”