Lenders issue fresh criteria for new-build valuations

The measures are designed to help prevent mortgage fraud and ensure new-property is accurately valued, to protect lenders and borrowers. From today, lenders will require builders and developers must complete a ‘disclosure of incentives’ form for any new-build, converted or renovated property. Recently, lenders have imposed strict lending criteria on many new-build homes, over fears that incentive structures are distorting true market values and buyer affordability. Recent television documentaries have also highlighted widespread use of builder’s incentives by fraudsters. Michael Coogan, ...