The Mortgage Works will cease to accept new applications for buy-to-let mortgages on newly built properties with effect from Monday December 5 2005.
After today, TMW will only accept buy-to-let applications on properties aged over one year.
All current applications in the pipeline will be honoured. The change only affects new buy-to-let mortgage applications.
Matthew Wyles, group development director at Portman, says: “Owing to the current over-supply of newly built property, valuation in this sector is more of an art than a science.
“Some developers are now prepared to do deals on price outside of the formal contract. In these cases the lender may be unaware of the actual price being paid and ends up relying on a valuation which may in turn be based on erroneous assumptions.
“We will go back into new build buy-to-let when we believe that the market forces of supply and demand have reached equilibrium.”