28 Apr

New mortgage rules introduced

New mortgage rules introduced

New mortgage affordability rules could have a significant impact on the UK property market.

The changes look at ensuring that people can afford mortgage repayments if interest rates change or borrowers experience major life events.

According to chartered surveyors Connells Survey & Valuation, the new rules have already impacted on property values, with the total number of property valuations for all purposes falling by nine per cent between February and March, leaving total activity at levels ten per cent below March 2013.

John Bagshaw, the firm’s corporate services director, explained that March is usually a peak time for valuations as the spring brings a strong property market.

He added: "Lenders have had to devote serious time and resources, gearing up for a radically different way of assessing mortgage applications. This has rapidly fed through into the valuations industry, resulting in a sharp dip in the number of completed valuations."ADNFCR-1222-ID-801715492-ADNFCR

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