Buy to Let Landlords Given New Guidelines
26/06/2008
The Council of Mortgage Lenders has announced its intention to introduce new valuation guidelines and standards for new-build properties. The guidelines are intended to reduce the risk both for lenders and borrowers.
There is a lack of funding available for buy to let investors at the current time. The new-build market, in particular, is widely thought to be saturated and as a result only a small group of lenders will provide mortgages on new-build properties. Those who will lend have stringent measures in place to ensure the buy to let mortgages on offer reflect the true property valuation.
Jonathan Moore, Head of Marketing at Mortgages for Business commented: "There is currently an oversupply of new-build apartments, particularly in city centres, leading to concerns over property valuation and achievable rents. This has meant already cautious lenders are increasingly refusing to lend to this property type."
The CML measures have been designed to restore the confidence of both lenders and borrowers in an area of the buy to let market which has suffered in terms of property valuation and availability of finance, and which has also seen a significant downturn in investors' interest. It is hoped that official valuation guidelines will provide clarity, and therefore confidence, on both sides.
There is a lack of funding available for buy to let investors at the current time. The new-build market, in particular, is widely thought to be saturated and as a result only a small group of lenders will provide mortgages on new-build properties. Those who will lend have stringent measures in place to ensure the buy to let mortgages on offer reflect the true property valuation.
Jonathan Moore, Head of Marketing at Mortgages for Business commented: "There is currently an oversupply of new-build apartments, particularly in city centres, leading to concerns over property valuation and achievable rents. This has meant already cautious lenders are increasingly refusing to lend to this property type."
The CML measures have been designed to restore the confidence of both lenders and borrowers in an area of the buy to let market which has suffered in terms of property valuation and availability of finance, and which has also seen a significant downturn in investors' interest. It is hoped that official valuation guidelines will provide clarity, and therefore confidence, on both sides.
