Hackney council cyber-attack prompting homebuyers to secure no search or search delay insurance mortgages

by Aaron Strutt

Nov 01 2021

The cyber-attack on Hackney council in November 2020 is still causing homebuyers significant issues when they buy properties in the borough.

Incredibly solicitors are still submitting their requests for property searches a year after the attack, and not getting a response from Hackney Council. 

Trinity Financial is helping buyers purchase properties in the borough by arranging no search or search delay insurance mortgages. Without these mortgages, properties in the area would be almost impossible to sell to buyers requiring mortgages.

One of the conditions of these no search or search delay mortgages is that it's taken with search indemnity insurance. For the buyer, having insurance in place of Hackney's authority information is not risk-free but worth it to enable their transaction to proceed.

Aaron Strutt, product director at Trinity Financial, says: "If you are planning to purchase a property in Hackney, the likelihood is that you will need to find a lender willing to take no search or search delay policies. Not all lenders take them. 

"Some lenders started accepting no search and search delays insurance to ensure buyers met the stamp duty holiday deadlines, while others still offer the criteria now the stamp duty deadline has passed. HSBC for Intermediaries may take local authority search indemnity insurance providing the property value does not exceed £1 million, and the conveyancer gives an unqualified certificate of title."

Which other lenders can help?

Skipton for Intermediaries and NatWest for Intermediaries initially relaxed their rules to ensure buyers meet stamp duty deadlines but still accept applications if local authority searches cannot be obtained in time. We have submitted cases to them recently.

Indemnity insurance policies

Indemnity insurance can be arranged to mitigate some of the risk buyers have from any search entries that could damage the property value but were not uncovered because the information was unavailable. For example, a planned development that would be disruptive to the house or the extension of a tube line. The policy will not cover you for every eventuality. 

Demand for property in Hackney has risen in recent years, and the median house prices have jumped from £292,500 in 2010 to £610,000 in 2020, an increase of 108%.

Need a no search or search delay insurance mortgage? Call Trinty Financial on 020 7016 0790 or book a consultation