Anyone who had anything to do with property finance in the UK from the 1990s to the 2010s will remember the Council of Mortgage Lenders, known widely as CML.
This industry body was formed when several mortgage lender associations merged back in 1989, with the intention of representing most UK mortgage lenders.
The CML carried out industry research to gather economic statistics, in addition to providing information about the housing market. It was also responsible for publishing the Lenders’ Handbook, which advised lenders on residential property transactions.
However, the CML was itself merged with several financial associations in 2017. UK Finance was formed from the CML, the British Bankers Association, the Asset Based Finance Association, Financial Fraud Action UK, Payments UK, and the UK Cards Association.
This merger occurred because an earlier independent review found that the efficiency of integrating these groups could save millions of pounds over the next few decades.
Now, UK Finance carries out the responsibilities of these associations in one place, covering a variety of areas – from banking and financial fraud to loans and mortgages – and encouraging a responsible and fair market for lending and borrowing.
What happened to CML certificates?
As the Council of Mortgage Lenders technically has not existed since 2017, the documentation they provided is no longer available, either.
This includes the CML Handbook, which was replaced with the updated UK Finance Mortgage Lenders’ Handbook, and CML certificates – which offered short-term limited financial protection as an alternative to building warranties.
A CML certificate was a document that could confirm to lenders that construction work on the property had been monitored by a qualified professional, such as a chartered engineer or surveyor, who could sign off on its compliance with building regulations.
This type of certificate is still available today, but it goes by the name of ‘Professional Consultants’ Certificate’ instead – known as a PCC for short.
As the CML did, UK Finance has a list of approved lenders in the UK, and most of these will accept PCCs from providers who meet their requirements as professional consultants. Namely, being registered with a recognised organisation, and having adequate professional indemnity insurance.
Finding a CML certificate provider
If you are looking to obtain a CML certificate for a new-build or renovation, several years after the closure of the CML due to being merged into UK Finance, you must look for a qualified PCC provider that works with UK Finance-approved lenders.
Many small contractors or individuals who prefer to self-build opt for a Professional Consultants’ Certificate due to its affordability, but when seeking a quote for a PCC, you must remember the limitations of this type of cover.
If the 6 years of cover with the option of claiming against the professional consultant’s indemnity insurance doesn’t provide enough peace of mind, most PCC providers also offer structural warranties, which may be more beneficial for your project.
You could always request a quote for each and compare which policy offers the most protection and value for the quoted price.
