How RICS Categories Affect Your Remortgage
The RICS knotweed category assigned to your property is the single most important factor in determining whether a lender will proceed. Category 1 (knotweed on adjoining land at least 7 metres from the boundary or your property) is treated as low risk and many mainstream lenders will lend, subject to monitoring. Category 2 (knotweed on the property but more than 7 metres from a habitable space) will cause high street lenders to decline but specialist lenders often proceed with a management plan.
Category 3 is where knotweed is within 7 metres of a habitable space or associated structure but no damage is evident. At this level, you will need a specialist broker to approach the right lenders, and an active treatment programme backed by a minimum 10-year insurance-backed guarantee is typically required. Category 4 involves visible damage and is the hardest to mortgage, but even here some specialist lenders will consider applications where a contractor has begun treatment and a structural engineer has assessed any damage.
Always instruct a PCA (Property Care Association) accredited contractor to survey the property and produce a management plan before approaching any lender. Lenders will not accept reports from non-accredited surveyors, and a professionally produced plan with a treatment schedule significantly improves your chances of approval.
Finding a Lender When Knotweed Is Present
High street lenders including many large building societies decline automatically when a surveyor notes knotweed on a valuation report. However, a growing number of specialist and challenger lenders assess each case on its merits. Lenders such as Together Money, Precise Mortgages and certain specialist buy-to-let lenders will consider knotweed cases, particularly where a management plan and insurance-backed guarantee are already in place.
The key to a successful application is instructing a whole-of-market broker who has direct relationships with specialist underwriters. Many cases that appear unacceptable to a lender at panel level can be approved when a broker presents the case directly to a specialist underwriter with full supporting documentation. This approach avoids unnecessary declined applications which could harm your credit record.
You should expect to pay a slightly higher interest rate than a standard remortgage while knotweed is present, but once treatment is completed and a surveyor confirms the property is clear, you may be able to switch to a more competitive mainstream deal at your next product transfer or remortgage.
