In an effort to help consumers that need poor credit mortgages, the CML announced that they would be working with banks on restrictions. These new rules may make it easier for some to get a poor credit mortgage, but others may find themselves no better off. According to experts, those in the poor credit mortgage bracket need to do all they can to improve their rating to increase their chances of getting an approval. This is the best policy for those that truly need to get a poor credit mortgage.”Some lenders have been concerned that the valuation and conveyancing processes do not always capture discounts and other incentives that buyers may be able to negotiate with developers when purchasing newly built property,” said the Council of Mortgage Lenders (CML) statement released today.”This may mean that, in some instances, lenders might unintentionally offer a mortgage based on a valuation of a property that is higher than the true price paid for it.”"Buyer, lenders and valuers have all been victims of the non-disclosure of incentives by developers with many buyers left with a mortgage worth more than the property’s real value,” RICS spokesman Barry Hall stated.
Related reading: Poor Credit Mortgage
Comment on this article