House price fall hits hopes of remortgaging for millions

RenovationMan

Graham_Devon wrote: »

Tactic from the banks?

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

Righty-O.

Oh dear, you haven't been reading people's posts again before diving in have you? I'm taking about remortgaging. Where is the 'seller' and 'estate agent' when you remortgage? Silly boy.

As I keep saying, you should type less and read more.

richbeth

Conrad wrote: »

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.

Hi,
this phenomena is known as the 'Endowment effect'. There is a fascinating book called 'Predictably irrational' that covers this and other subjects. They've done studies using situations such as auctions to ask people the financial value of something before they own it and then after they bought it.

http://en.wikipedia.org/wiki/Predictably_Irrational#The_High_Price_of_Ownership

It's one of many studies which show that supply and demand isn't anywhere near as simple as economists would have us believe.

The book is thoroughly recommended if these kinds of thing interest you.
All the best,
Richard

ess0two

I remortgaged last month,for LTV purposes the same lender valued my property at 1k less than 2010 valuation.

RenovationMan

ess0two wrote: »

I remortgaged last month, for LTV purposes the same lender valued my property at 1k less than 2010 valuation.

I've just looked at the land registry figures for my area between now and since I made an offer on our home in 2010. Houses have fallen by 6.4% overall. The house was valued at £475k by the estate agent and we dropped it to £450k when we bought it, so going off the original estate agent valuation minus 6.4%, it looks like my house has a valuation of £444,600.

That's well within my LTV 60% range for the best mortgage deals, so although the calculation was a bit 'rough and ready', I'm happy to be on track with my financial aims.

kabayiri

ess0two wrote: »

I remortgaged last month,for LTV purposes the same lender valued my property at 1k less than 2010 valuation.

You do realise that in parts of Salford that can be as much as a 10-20% drop !

ess0two

kabayiri wrote: »

You do realise that in parts of Salford that can be as much as a 10-20% drop !

LOL the Quays probably not,great place for a swim in the docks there.
Shall be swimming there Saturday morn,with www.uswim.com

chucknorris

RenovationMan wrote: »

I've just looked at the land registry figures for my area between now and since I made an offer on our home in 2010. Houses have fallen by 6.4% overall. The house was valued at £475k by the estate agent and we dropped it to £450k when we bought it, so going off the original estate agent valuation minus 6.4%, it looks like my house has a valuation of £444,600.

That's well within my LTV 60% range for the best mortgage deals, so although the calculation was a bit 'rough and ready', I'm happy to be on track with my financial aims.

I was quite surprised that my flats in Battersea (SW11) are less than 5% below peak (based on sales in the same blocks last winter). Previously I had assumed about 15%, although I didn't have any real evidence to base that on, but then again as I have no intention of selling I wasn't particularly bothered. But it is comforting to know that I am not that far away from where I hope to be when things eventually pick up.

Idiophreak

HAMISH_MCTAVISH wrote: »

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

Which, ironically, is worsened by aggressive down-valuations from lenders. And round we go again...

chewmylegoff

chucknorris wrote: »

I was quite surprised that my flats in Battersea (SW11) are less than 5% below peak (based on sales in the same blocks last winter). Previously I had assumed about 15%, although I didn't have any real evidence to base that on, but then again as I have no intention of selling I wasn't particularly bothered. But it is comforting to know that I am not that far away from where I hope to be when things eventually pick up.

can't really be that surprising for you unless you haven't been looking at any of the indices for the last couple of years.

Graham_Devon

RenovationMan wrote: »

I've just looked at the land registry figures for my area between now and since I made an offer on our home in 2010. Houses have fallen by 6.4% overall. The house was valued at £475k by the estate agent and we dropped it to £450k when we bought it, so going off the original estate agent valuation minus 6.4%, it looks like my house has a valuation of £444,600.

444k asking value, yes.

More like £421k real value. However, as you've done so much, it's hard to say. Most likely around the same price you bought at?