FirstRungNow: New property valuation may make it harder for first-time buyers

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FirstRungNow: New property valuation may make it harder for first-time buyers

Wed 13th Aug 2008

New property valuation rules could make it harder for first-time buyers to get a mortgage the size they want, FirstRungNow has said.

The organisation, which offers help and advice to first-time buyers, said that the new rules would improve the transparency of house prices and benefit lenders.

But managing director Helen Adams said that first-time buyers "might find it harder to get a mortgage as big as they want it to be".

The new rules were announced in June by the Council of Mortgage Lenders, which said it was introducing new procedures to "ensure that the conveyancing and valuation processes capture the true value of the property".

Builders and developers will have to complete a disclosure of incentives form.

The rules come into force on September 1.

Ms Adams warned: "It is possible to end up in negative equity if you're getting a mortgage out which is equal to, or more than, the whole value of the property."

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