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From the beginning of September, lenders will require builders or developers of any newly built, converted or renovated property to complete a new disclosure of incentives form.

Michael Coogan, director general of the CML, said: "Lenders need to know about discounts and other incentives so they can be sure that the decision to offer a mortgage is based on a reliable valuation of the property.

"The new measures will provide additional security and safeguards for borrowers, as well as lenders."

Maria Harris, head of sales for Bank of Scotland Mortgages, said: "Determining the true purchase price of a property is essential to our prudent approach to lending.

"Having a standard form with a declaration from the builder or developer would ensure that all parties, including the valuer are aware of the incentives, that will compliment our robust processes."