Homeowners overvalue property, says Abbey
Abbey Mortgages, which recently started offering two, three and five-year fixed rate mortgage products at 70 per cent loan-to-value, has released results of new research, showing how British homeowners overvalue their properties.
The study indicates that, whereas the Land Registry puts the average cost of a home in England and Wales at £152,895, the average mortgage holder thinks their house or flat is worth £190,175.
It would seem that property owners believe their homes are worth over £37,000 more than they actually are.
Nici Audhlam-Gardiner, director of mortgages at Abbey, said: "Homeowners looking to remortgage or sell their homes in the near future need to make sure that the value of their home is accurate and [ensure it] has been valued by professionals."
This will help avoid problems or disappointment later down the line of the house-selling process, she added.
With people overvaluing, anyone who has been approved a home loan such as those with mortgages for professionals may have more negotiating power.
Mortgages for Professionals provides expert mortgage advice for high earning professionals on over 30,000 mortgage types.
The study indicates that, whereas the Land Registry puts the average cost of a home in England and Wales at £152,895, the average mortgage holder thinks their house or flat is worth £190,175.
It would seem that property owners believe their homes are worth over £37,000 more than they actually are.
Nici Audhlam-Gardiner, director of mortgages at Abbey, said: "Homeowners looking to remortgage or sell their homes in the near future need to make sure that the value of their home is accurate and [ensure it] has been valued by professionals."
This will help avoid problems or disappointment later down the line of the house-selling process, she added.
With people overvaluing, anyone who has been approved a home loan such as those with mortgages for professionals may have more negotiating power.
Mortgages for Professionals provides expert mortgage advice for high earning professionals on over 30,000 mortgage types.
