Transparency increased in new homes market

Posted: 02 Sep 2008 13:25:44 GMT

The Council of Mortgage Lenders (CML) has introduced new measures to help bolster confidence lender confidence in the new-build property market, it has announced.

From September 2nd, builders and developers of newly-built or renovated properties will be asked by lenders to complete a 'disclosure of incentives' form documenting any discounts being offered by developers to ensure that mortgages are granted on a precise valuation.

In the past, lenders have often felt that valuation and conveyancing process often fail to capture the various discounts and incentives that affect the valuation of a property.

It is hoped that the new regulations will have the effect of reducing the risk of mortgage fraud while providing borrowers and lenders with more protection.

Commenting on the new system, SmartNewHomes.com welcomed the greater transparency that the new valuation process will bring.

"At a time when mortgage availability is limited, this latest initiative will restore lenders with some much needed confidence when looking to lend on a new build home," said David Bexon, managing director of the property portal.


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