Newly Built Properties
19 June, 2008 | Web design
Newly built properties are going to see a difference in the way they are valued by mortgage lenders, to aid in the prevention of mortgage fraud.
The Financial Services Authority have been cracking down on Mortgage fraud, it is a significant element of the UK's annual fraud losses, believes the association of Chief police officers.
Lenders were concerned that deals and discounts on new flats were not always being disclosed, they could also find themselves at risk as a disproportionate number of fraud cases have involved newly built apartments in city centres.
Buyers could be tempted by cash back offers, from developers along with offers of legal fees being paid, clearing stamp duty and/or paying for the cost of the move.
Developers and builders of newly built and converted properties will have to fill out a form which ensures all incentives are disclosed, from1stSeptember, mortgage lenders need to maintain confidence with the housing developers.
Rics spokesman Barry Hall said "All parts of the property industry are in agreement that standards must be maintained and that the consumer must be protected from any disingenuous practice."
The CML (The Council of Mortgage Lenders) hope that the new rules will help stop mortgages being granted that were worth more than the value of the home.
Michael Coogan CML director general adds, "We are introducing these measures to help sustain confidence in the market for newly built properties."