House price fall hits hopes of remortgaging for millions

Conrad

Just had 2 different clients in that are over valueing thier homes.

One is trying to urgently sell as there is a deadline on the 'dream home' he is buying, so I strongly advised he price his to sell, so what did he do........... he put it up at the highest end of the valuation spread he recieved from agents.

The other chap won't sell his and instead wants to let to buy because 'he can't get the money it's worth in this market'.

It's as if people mentally bank the peak market price and set it in stone never to be moved, yet they were perfectly able to mentally accept a moving price point when the trend was up.

To be fair though I find people are like this when selling cars, and yes that will include some of you house seller critics here. For some reason we attatch greater value when it comes to our own possessions.

abaxas

mystic_trev wrote: »

'Evil Surveyors prey on hard working families'

"Homeowners fury at being told they are wrong."

Wookster

I could rephrase the title of this post to House price fall gives hope for millions of FTBers

HAMISH_MCTAVISH

Wookster wrote: »

I could rephrase the title of this post to House price fall gives hope for millions of FTBers

A false hope for most, as most of them cannot get mortgages. And that won't change materially even if prices fall.

RenovationMan

With LTV having such a large impact on mortgage affordability, it's no surprise that home owners want their valuations to be as high as possible. With banks having to lower their risk and increase their profits, it's no surprise that they will want their valuations to be as low as possible.

Bit of a non-story except to alert home owners to this tactic from the banks. All they can do now is to make overpayments to their mortgages to increase their LTV and to 'name and shame' on these sorts of forums the banks who are doing the lowest valuations and to champion those who are doing the highest.

shortchanged_2

RenovationMan wrote: »

Bit of a non-story except to alert home owners to this tactic from the banks. All they can do now is to make overpayments to their mortgages to increase their LTV and to 'name and shame' on these sorts of forums the banks who are doing the lowest valuations and to champion those who are doing the highest.

The pressures on renoman.

Obviously the banks are realising which way house prices are going or they wouldn't value so low would they.

kabayiri

Some of us have been here before, needing to change property during the mid 90s housing dip.

It can be done. You have to be flexible and accept that a loss on the current property can be outweighed by the gains on the property you are buying.

The lady in the OP needs to see the bigger picture, and consider advertising for an exchange perhaps. There is always a deal to be done, if both parties see value in it.

RenovationMan

This part of the article pretty much sums up what I said in my earlier post:

"Be aware, too, that lenders also sometimes use automated or ‘drive-by valuations’ to calculate your house price.

So if the surveyor hasn’t stepped inside the property, try negotiating with the lender, especially if you have made home improvements. You will need a compelling argument — made easier if similar properties sold in your area at higher prices. Ask estate agents for recent sale prices and use this as evidence.

Over the longer term, improving your home might help to increase its value and boost your chances of getting a good mortgage deal. Alternatively, you can try to remortgage with another lender in the hope that their valuation will be higher.

But there are no guarantees. They could use the same surveyor as before, since lenders outsource the task to large national surveying companies, such as Colleys and e-surv, and you might lose out if you pay a non-refundable fee for the valuation or to reserve the mortgage.

If you believe a valuation was handled particularly badly, you can take your case to the Financial Ombudsman Service at financial-ombudsman.org.uk or by calling 0800 023 4567."

The incentive is there for the banks to undervalue properties and to force homeowners to move to higher mortgage rates - increasing the bank's profit for lending the same amount of money. One wonders if this will become the next miss-selling scandal?

shortchanged_2

At least you've got the FOS's number now renoman if your valuation doesn't come out as expected.

Graham_Devon

RenovationMan wrote: »

Bit of a non-story except to alert home owners to this tactic from the banks. All they can do now is to make overpayments to their mortgages to increase their LTV and to 'name and shame' on these sorts of forums the banks who are doing the lowest valuations and to champion those who are doing the highest.

Tactic from the banks?

So it's not the seller and not the estate agents getting the values wrong...but the banks?

Righty-O.