The Council of Mortgage Lenders (CML) has introduced a ‘disclosure of incentives’ form which it hopes will ensure the true valuation of a newly-built property.

Lenders will ask developers or builders of newly-built properties to complete one of the forms. The CML hopes that by disclosing any incentives being offered by developers, mortgages will then be offered at the true value of the property, which will also help to combat fraud in the mortgage industry.

The CML believes that by developers disclosing all incentives it will allow for greater protection for both buyers and lenders. Lenders’ confidence in the newly-built market has been dented due to experiencing losses and cases of fraud. It is hoped that having this information will go someway to restoring some confidence back to the sector.

John Stewart, director of economic affairs for the Home Builders Federation (HBF), told PIN: “In today’s very difficult market conditions, it is most important that lenders have confidence in the value of new homes. HBF has worked with the CML to make sure the Disclosure Form meets lender needs, while at the same time fitting in with house builders’ normal sales and legal procedures.”