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Mortgage lenders to become "more cautious"
15.08.2008
The introduction of new property valuation standards may see mortgage lenders become more "cautious", it has been claimed.
Announced in June by the Council of Mortgage Lenders, the new procedures are intended to provide more accurate valuations for property.
Helen Adams, managing director of FirstRungNow, said the changes may make taking out a mortgage more complex and time-consuming.
As lenders become more careful about who they lend money to, the process may become "more drawn-out and complicated", Ms Adams stated.
"That will mean, in today's climate, that they will be more cautious about lending. It's just another thing making it harder for borrowers to get a loan," she said.
Recent figures from Nationwide Building Society showed the average price of a house in the UK stood at £169,316 in July.
This figure was 1.7 per cent lower than the price recorded in June and 8.1 per cent lower than a year earlier, the firm noted.
Announced in June by the Council of Mortgage Lenders, the new procedures are intended to provide more accurate valuations for property.
Helen Adams, managing director of FirstRungNow, said the changes may make taking out a mortgage more complex and time-consuming.
As lenders become more careful about who they lend money to, the process may become "more drawn-out and complicated", Ms Adams stated.
"That will mean, in today's climate, that they will be more cautious about lending. It's just another thing making it harder for borrowers to get a loan," she said.
Recent figures from Nationwide Building Society showed the average price of a house in the UK stood at £169,316 in July.
This figure was 1.7 per cent lower than the price recorded in June and 8.1 per cent lower than a year earlier, the firm noted.