Debate House Prices


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The Real Lowdown on Abbey Flexible Plus LTV revaluation

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  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    I do feel however that the Land Registry is more accurate as it is based on all recorded property sales in a period.

    As dr beat and I have already stated earlier the LR is inaccurate, at least 3 months behind, no new builds, no repo's, no auctions. That's quite a lot of the market at the moment. In fact I would probably say Halifax index of 18% down since peak (Oct 07), is conservative in some areas of the country.
  • brit1234 wrote: »
    Yes the Halifax figures are not accurate, they underplay the true levels of falls.



    The land registry figures are about 4 months behind the Halifax figures. As the others say they don't include repossession sales. That it self distorts the land registry figures massively especially as auctions represent one of the biggest area of sales at the moment with average 40-50% reductions. However they include the other largest area of sales the shared equity properties which distorts them higher than they should be. Also they have been affected by years of newbuild/buy to let fraud and hence highly overvalued.


    The simple fact is on average properties that sell are 30-40% reduced from peak. That is the current market level like it or not.

    Abbey are just trying to protect themselves from the falls and the market is certain to fall further with even less funds available next year.

    What you need to do is put as much equity into your overvalued house and accept the price might fall 40-60%.

    As you may have noticed my complaint with Abbey is to do with how they are applying the terms and conditions they are relying on in their revaluations. You may have noticed that I am not complaining about the fall in the value of my property.
  • brit1234
    brit1234 Posts: 5,385 Forumite
    As you may have noticed my complaint with Abbey is to do with how they are applying the terms and conditions they are relying on in their revaluations. You may have noticed that I am not complaining about the fall in the value of my property.


    I don't see why you are moaning then Halifax is using figures that do not show the true extent to the price drops. Surely that is a bonus for you.

    You simply can't use delayed figures to value you house when the market is falling so fast. It wouldn't be sensible for Abbey to calculate it that way.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • drbeat
    drbeat Posts: 627 Forumite
    As you may have noticed my complaint with Abbey is to do with how they are applying the terms and conditions they are relying on in their revaluations. You may have noticed that I am not complaining about the fall in the value of my property.

    But the fall in value of your property is the crux of their action. They are using an accepted industry index - one that enabled EAs and speculators to overprice houses which at that time no-one protested about.

    The LR figures don't give a clear picture of what is really going in with regards to ALL transactions. If they did then you'd find that Abbey will gladly use the LR instead as it would enable them to give a lower valuation.
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    To be Honest abbey, I do have some empathy for you, all banks funds are shrinking at the moment, this is going to continue until asset prices match the money that is out there, this is going to be very painful for the likes of yourself and others who have either bought or remortgaged in the last 2-3 years with little deposit/equity.
  • mizzbiz
    mizzbiz Posts: 1,434 Forumite
    I agree with Dr Beat and Ad regarding the indexes that supposedly measure house prices. It is true that the LR are particularly wayward. The Halifax figures are representative but not neccessarily accurate because they are, of course, retrospective, as they were when the market trend was the other way.

    However, I think the maint point, on which I agree with the OP is an outright disgrace, is the 'theft' of what is essentially that persons savings, with no notice. Although I'm not in the same position I do sympathise with you. It is a huge discouragement for overpaying the mortgage and I hope you do get some recompense from Abbey. The fact that your house is worth less than you bought it for should not be justification for changing the basis of the contract you had with them or utilising exception clauses, if this is indeed the case as I do not have the agreement to view.
    I'll have some cheese please, bob.
  • drbeat wrote: »
    But the fall in value of your property is the crux of their action. They are using an accepted industry index - one that enabled EAs and speculators to overprice houses which at that time no-one protested about.

    The LR figures don't give a clear picture of what is really going in with regards to ALL transactions. If they did then you'd find that Abbey will gladly use the LR instead as it would enable them to give a lower valuation.

    I reiterate that I am complaining about the way that Abbey are applying the revaluation as in my opinion they are not conforming to the T&C's of the product. I reiterate that in my opinion a valuation at any phase of a financial cycle can only be relied on if a professional survey is obtained from a suitably trained operative. (In a similar way to the valuation carried out prior to an offer being made to me by Abbey. i.e Individual property valuation).
  • ad9898_3
    ad9898_3 Posts: 3,858 Forumite
    mizzbiz wrote: »
    I agree with Dr Beat and Ad regarding the indexes that supposedly measure house prices. It is true that the LR are particularly wayward. The Halifax figures are representative but not neccessarily accurate because they are, of course, retrospective, as they were when the market trend was the other way.

    However, I think the maint point, on which I agree with the OP is an outright disgrace, is the 'theft' of what is essentially that persons savings, with no notice. Although I'm not in the same position I do sympathise with you. It is a huge discouragement for overpaying the mortgage and I hope you do get some recompense from Abbey. The fact that your house is worth less than you bought it for should not be justification for changing the basis of the contract you had with them or utilising exception clauses, if this is indeed the case as I do not have the agreement to view.

    This is why I aim to buy outright or with an LTV of around 15-20% max, I don't want to be tied to any banks T&C's, they will never be in your favour.
  • drbeat
    drbeat Posts: 627 Forumite
    I agree with mizzbiz, the way they are going about this is disgusting. They need to accept the fact that it was them that lent the money so take a hit themselves. The OP has taken a hit on the fall in value of his/her property so the banks ought to do the honourable thing and accept their loss too!

    Just how on earth can these banks expect a return in confidence from consumers if this is the way they behave when things don't go right! Like with the bank charges they seem to think that it is perfectly fine to notify you of their intention to steal you money without chance of an appeal!

    To$$ers!
  • 3under3
    3under3 Posts: 174 Forumite
    In effect they seem to be saying if you overpay your mortgage they will use those funds to maintain the 90% LTV but if you don't overpay your mortgage they will not demand a lump sum payment to maintain the 90% LTV. So in effect treating those who are making an effort to overpay their mortgage less favourably than those who don't.
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