Lenders call for tighter regulation
Mortgage lenders have called for tighter regulation to stop fraudulent new build deals. The Council of Mortgage Lenders (CML) believe that difficult conditions in the property market could encourage developers to offer deals such as cash-back offers that inflate the value of the property. Other deals the CML are concerned about are offers of white goods, holidays and free legal fees. The CML said:
“In recent years, discounts and incentives have had the effect of making the real value of new homes less than transparent. This is bad news for genuine buyers and for lenders. Buyers may find themselves with a mortgage more than the property’s value, while lenders may find themselves exposed to fraud and the risk of loss.”