Released on: June 24, 2008, 3:00 am

Press Release Author: Jonathan Moore

Industry: Real Estate

Press Release Summary: The Council of Mortgage Lenders on 11 June announced that it
is introduce new guidelines and standards concerning the valuation of new-build
property. The new procedures come into effect on 1 September and will ensure that
the valuation processes capture the true value of the property, reducing risk for
both borrowers and lenders.

Press Release Body: Mortgages for Business, the specialist in buy-to-let mortgages, says that the
new guidelines and standards only reflect and reinforce measures that many lenders
have already put in place.

There are currently only a small group of buy-to-let lenders who will lend on
new-build properties and they have already put stringent measures into place to
ensure the buy-to-let mortgages
offered reflect the true property valuation.

Jonathan Moore, Head of Marketing at Mortgages for Business said: "There is
currently an oversupply of new-build apartments, particularly in city centres,
leading to concerns over property valuation and achievable rents. This has meant
already cautious lenders are increasingly refusing to lend to this property type."

The CML measures are designed to restore lender and investor confidence in an area
of the buy-to-let market which has been hardest hit on property valuation and
availability of finance, and which has seen a significant downturn in investors'
interest.

"It seems unlikely that buy-to-let lenders will offer new-build mortgages in short
term until there an upward trend in sector activity," adds Jonathan.

The buy-to-let mortgage industry has demonstrated concerns around new-build
valuations for some years, with the Mortgage Works withdrawing from the sector
altogether in 2006. This was further reinforced by Mortgage Express, the UK's
largest buy-to-let lender, stating in February this year that future remortgage
offers on new-builds will be based on the lower of purchase price less discount or
valuation.

Jonathan concludes: "Investors should be wary of discounts and guaranteed rents
because a property should be attractive without the need for additional incentives.


"Successful portfolio landlords who are still active in the market tend to buy
existing properties in areas they know well and have extensively researched.
Properties in up and coming areas or where there is an underlying reason for capital
and rental uplift provide the basis of a solid investment strategy. It is essential
not judge the buy-to-let sector by performance of new build property."

For more information call Mortgages for Business on 0845 345 6788 or visit
www.mortgagesforbusiness.co.uk

## ends ##

Notes:
Mortgages for Business are independent experts in buy-to-let mortgages managing single
and multi-let property portfolios for thousands of UK investors. Its brokers have
access to a large portfolio of fixed and variable interest rate mortgages from a
panel of over 30 lenders and offer truly independent advice that is appropriate to
investors.



Web Site: http://www.mortgagesforbusiness.co.uk

Contact Details: Contact
Jonathan Moore, Head of Marketing
Mortgages for Business
Tel: 01732 471600 / 07810 717421

Alison Baldwin, Coast Communications
Tel: 01233 503200 / 07949 561489