Lenders 'growing more cautious'

The managing director of FirstRungNow predicts that lenders will grow more cautious when new rules for valuing properties are introduced.

In June, the Council of Mortgage Lenders (CML) revealed that new procedures are to be implemented from September 1st to ensure that a property's true value is captured during the conveyancing and valuation process.

Helen Adams forecasts that mortgage and remortgage providers are likely to adopt a more careful approach in light of these changes, due to the new complications involved with valuations.

"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 says.

According to the CML, the average first-time buyer borrowed a mortgage that was 3.33 times their income in June of this year, down from a corresponding figure of 3.35 in May.

Meanwhile, the typical home-mover borrowed 2.94 times their income, down from May's figure of 2.97.

How can I get repossessions stopped