Twitter Facebook RSS FEEDS

Mortgage transparency welcomed by industry

Monday, 16 June 2008 12:00 AM

Plans announced last week to encourage increased transparency in the UK mortgage sector have been welcomed by the industry.

Last week the Council of Mortgage Lenders (CML) announced it was to introduce new standards for industry professionals who act for lenders on newly-built property transactions.

Under the new rules, lenders will require builders or developers of any newly built, converted or renovated property to complete a new 'disclosure of incentives' form in order to ensure the conveyancing and valuation processes capture the true value of the property.

These changes have been endorsed by the Royal Institution of Chartered Surveyors (Rics), which confirmed it is to tighten the standards for the valuation of new-build property.

The moves have now been welcomed by property portfolio management provider Young Group.

"Responsible developers and builders recognise lenders treat newly built property as an asset class in its own right and that those lenders must have confidence in the valuation process in order to lend against such assets," said Neil Young, chief executive of Young Group.

"We welcome CML's efforts to introduce further transparency and robustness to the valuation process by ensuring that all incentives are declared.

"This is something that Young Group has championed through our Financial Service Authority (FSA) regulated mortgage brokerage, Young Finance, and we're pleased that the industry is putting further self-regulatory measures in place to enhance the professionalism of those operating in the sector," he added.

The newly announced procedures, set to come into force on September 1st 2008, require full disclosure of any discounts and incentives received by purchasers, to ensure that the conveyancing and valuation process captures the true value of the property, thereby reducing risk for both purchasers and lenders.

The Home Builders' Federation and Homes for Scotland have also both recently reinforced their own codes of conduct to encourage greater transparency in this area.

Chris O'Toole

Related stories

The Housing Minister called for better transparency in social housing system.

Shapps wants transparency in social housing

Grant Shapps called for transparency in social housing as he unveiled plans to consult on a new way to scrutinise housing associations.

Foxtons

OFT warns lettings industry about renewal terms

The OFT is concerned that some landlords and letting agents remain unaware of the implications of a High Court ruling against Foxtons.
Builder on phone

Construction industry welcomes planning changes

Housing industry body the British Property Federation has today welcomed Government plans to shake up planning policy.

 Over zealous countryside development is a major concern for many. Image:Thinkstock

National Planning Policy Framework: Property industry reaction

Today the government's final changes to planning were both released and implemented, here we round up what the property industry think of the alterations.
New CML figures show small fall in mortgage lending in September but another improvement in affordability.Image: Thinkstock

Mortgage lending dips but payments cheaper

Interest payments as a proportion of income fall again for first-time buyers and stay at record low for home moves.

 Building secure mortgage market

Mortgage industry at risk from government delays

Mortgage industry at risk from government delays

George Osborne with the original budget briefcase. Image:PA

Budget 2012: Property industry reactions

Our round-up of reaction to today's budget from around the property industry.

 Scrapping of Hips welcomed

Hips suspension welcomed by lenders

A leading buy-to-let mortgage lender has bid "goodbye and good riddance" to home information packs (Hips).
London boroughs to get greater housing control

London housing proposals welcomed

Local authorities in London are to get greater control over their housing budgets.

 Housing

Property industry to help first-time buyers

The government wants house builders and mortgage lenders to offer first-time buyers greater support.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.

FAQs about commercial stamp duty

If you want to relocate to larger premises, you need to know about commercial stamp duty. Different rates apply than with residential property, however, like residential buyers, you could potentially benefit from stamp duty mitigation.

Save space with a small bathroom suite

Most people dream of having spacious bathrooms with a freestanding tub and a separate shower cubicle where you can relax in pure luxury. However, the reality is that bathrooms are rarely as big as we'd like them to be. Here are some tips on how to make the most of a small bathroom.