Archive for the ‘Mortgage’ Category
Mortgage Lenders Demand More Transparency In Cost Of New Homes
Traditionally, developers have often included items such as payment of stamp duty or fixtures and fittings such as carpets and curtains in their final price to new home-owners.
However, as lenders try to tighten up on mortgage fraud and ensure borrowers do not over-borrow against property values, they have imposed a change of rules which mean solicitors must declare any incentives given to home-buyers within the conveyancing process.
“Lenders want to be clear as to the true value of the property and that the value is not artificially inflated,” says Simon Pook, head of residential property at solicitors, Charles Lucas and Marshall. “We must now include paperwork which details any incentives.”
The Council of Mortgage Lenders – which has introduced the new ruling – believe the price of newly built homes is often distorted by incentives offered by developers.
They want to ensure that future mortgage offers are based on realistic prices of new property.
“This is just another indication of how tough it is to get mortgages in the current climate and how lenders are trying to tighten up every loophole possible to protect their interests,” added Simon Pook.
For more information contact Simon Pook on 01635 521212 or simon.pook@clmlaw.co.uk
