How the scheme works
The mortgage application process and the role of BOPAS in delivering an informed view to lenders and valuers:
- Manufacturers of innovative systems apply to BOPAS for determination that construction systems meet agreed lender standards for mortgage purposes (brown arrows into database).
- Lloyd's Register and BLP carry out the appropriate assessments on behalf of BOPAS.
- Upon satisfactory completion of assessments the database is populated with manufacturer / constructor details together with associated construction details and approved sites. Developers may then present to the lenders through accessing the website, the BOPAS approvals trail including the specific development site, enabling the lender to commit in principle to accept the form of construction. This does not represent a guarantee of mortgage.
- Developers linked to BOPAS approved manufacturers / constructors with lending approvals-in-principle can go ahead with developments and offer properties for sale, in the knowledge that the construction method meets lender mortgage standards (blue arrows).
- BLP will carry out supervision inspections during the course of construction and update database with details relating to individual plots, ensuring actual construction meets the standards and details of the in-principle agreement.
- Purchasers make applications to lenders (green arrow) and lenders instruct valuers in the normal way to carry out mortgage valuations when applications are received from purchasers.
- Valuers recognise unconventional form of construction when on site (circled arrow). This is the point at which applications on innovative construction types usually fail.
- Valuers access the BOPAS database and receive confirmation that the construction technology has been approved under the scheme (brown arrow away from database to valuer).
- Valuers can then provide a valuation taking into account the normal criteria, but confident that the construction technology has been approved for lending purposes and, additionally, that the Latent Defects cover on the completed unit meets lender requirements (grey arrow).