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First-time buyers 'may not be able to borrow as much as they want'

By Jonathan Dawes, Wed 13 Aug 2008 - Published in Mortgages

New regulations regarding valuing properties could make it more difficult for first-time buyers to be able to get a home loan as big as they may like, according to FirstRungNow.

Managing director Helen Adams said the rules which are due to come into effect on September 1st would improve the transparency of house prices.

However, although the regulations might reduce the amount they can borrow, Ms Adams said "it's good for first-time buyers in that there will be transparency and it will be good for the lenders".

The Council of Mortgage Lenders announced in June their decision to introduce new procedures to make sure conveyancing and valuation processes reflected the true value of a property.

From September 1st, builders and developers will be required to complete a disclosure of incentives form.

Recent figures from Nationwide showed the average price of a house in the UK in July stood at £169,316, a drop of 1.7 per cent on the previous month and 8.1 per cent on the same time last year.