Legal Updates

New regulations ''could affect mortgage availability''

Date:  15 Aug 2008

Prospective landlords seeking buy-to-let mortgages may see financiers may becoming "more cautious" with their lending, it has been claimed.

New Council of Mortgage Lenders (CML) regulations set to come into force on September 1st will make the process of securing finance "all the more drawn-out and complicated" for house buyers, according to the managing director of advisory service FirstRungNow.

Builders and developers will be required to complete a disclosure of incentives form on any new properties, as the CML aims to ensure conveyancing and valuation processes" capture the true value" of properties.

Helen Adams states that while buyers may benefit from increased transparency, "they might find it harder to get a mortgage as big as they want it to be".

Referring to the new rules, she added: "Anything that improves the transparency of house prices is good and it''s always been the case that new-build properties have been highly priced with a premium.

"There are good reasons for that but, like when you''re buying a new car, with new houses you quite often get depreciation in the first year."

Earlier this month, the CML reported that homebuyers in June 2008 placed an average deposit of 22 per cent the value of the property.

Vizards Tweedie specialise in all aspects of commercial and residential property work

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