We are committed to keeping you up-to-speed with all key changes as they occur. We fully appreciate changes are coming thick and fast and so in the interests of not overloading you with emails, where possible, we will consolidate key messages.

With this mind, please see below for a combination of new updates plus a re-cap over some of the key changes from the last two weeks.

On a personal note, I would like to thank you for all your ongoing support and patience through what is a really challenging period for all of us. Our commitment to you is unwavering and please rest assured that we are making decisions and taking actions with a view of what is best for you, your clients and the market overall.

Important new updates

Extending mortgage offers

Government and mortgage lenders have agreed that your clients who’ve exchanged contracts already will be able to extend their mortgage offer by up to three months. This is to enable them to move at a later date as the COVID-19 situation has disrupted many house moves. We’re currently working to deliver a solution to extend mortgage offers for affected customers, and will communicate further details to you in due course.

What happens if your client has a change in circumstance?

For pre-offer applications:

  • Your client is contractually required to notify us of any changes in their circumstances
  • If there are any changes pre-offer the application will need to be re-assessed, and as result the application may not  progress

Post-offer applications:

  • Your client is contractually required to notify us of any changes in their circumstances
  • As this is post-offer, they’ll need to notify us so we can pause their application
  • If your clients’ situation returns to what was submitted in the application, we can continue progressing the application
  • Your client should negotiate their completion date with the vendor so they don’t incur any penalty from the vendor.

Temporary closure of Land Registry Offices in Scotland and Northern Ireland

Due to the COVID-19 situation, both the Registers of Scotland (RoS) and Northern Ireland’s Land and Property Services Office have temporarily closed their offices. This means that deeds of title, including our charge documents, cannot be registered following completion for properties in Scotland or Northern Ireland.

This poses a risk to lenders as solicitors are unable to register our charge over the property. As a result we have been working closely with UK Finance and legal counsel to understand potential alternatives.

  • For completions in Scotland: a solution has been agreed between the Registers of Scotland and the Law Society, and we’re continuing with completions (solicitors should have registered an Advance Notice for the completion to go ahead).
  • For completions in Northern Ireland: no solution has been found yet, and we regret that we cannot proceed with completions until the situation is resolved.

New mortgage applications in Scotland and Northern Ireland:

  • Applications for Scotland and Northern Ireland should not be submitted, due to the challenges with completions outlined above.
  • We will continue to work with UK Finance and external counsel and to request updates on the office closures.
  • Further Advance applications and rate switches can continue to be processed as usual.

Recent Updates