New property valuation rules ''will make getting a mortgage harder''

By MoneyhighStreet Staff. Published on August 17, 2008 This post currently has no comments.

Couple with house
Recently announced changes to rules about how properties in the UK are valued could make lenders more cautious about offering mortgages, one industry expert has said.

In June, the Council of Mortgage Lenders (CML) revealed that it was introducing new procedures to "ensure that the conveyancing and valuation processes capture the true value of the property".

This means that from September 1st, builders and property developers will be compelled to complete a disclosure of incentives form.

However, Helen Adams, the managing director of FirstRungNow, has said that the changes could end up making it even harder for people to get mortgages.

"We will see lenders be more cautious with their lending so it will make the process all the more drawn-out and complicated in terms of valuing the property and how they decide whether to lend," she explained.

"That will mean, in today''s climate, that they will be more cautious about lending. It''s just another thing making it harder for borrowers to get a loan."

Recently, Abbey Mortgages suggested that more and more people were considering taking lodgers to help them meet their monthly repayments.