Price over-estimation could leave homeowners in need of debt management solutions
Price over-estimation could leave homeowners in need of debt management solutions
Wednesday 20th May 2009
A study conducted by the organisation has found that British homeowners are valuing their properties wrongly by over-estimating prices by as much as £35,000 or more.
On average, property owners estimate their homes to be worth £190,175, but this figure is inflated by £37,280 when the official Land Registry house price average of £152,895 is brought into the picture.
People in the South East of England are the worst when it comes to over-estimation, wrongly thinking their investments are worth £53,422 above Land Registry estimates, while those in London have the least margin - £22,784.
It is vital for consumers to ensure they have their figures right, especially when thinking of remortgaging, according to Abbey director of mortgages Nici Audhlam-Gardiner.
"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 has been valued by professionals to avoid problems or disappointment further down the line," she said.
She went on to urge consumers to take advantage of low rates, saying "the longer a customer delays on standard variable rates, the more they risk that the good rates are out of reach to them due to fall in value of their home and the increase in their loan-to-value".
Figures from the Council of Mortgage Lenders recently revealed that the number of people getting into debt as a result of falling behind on their mortgage payments is continuing to rise.
News article brought to you by Debt1 – The debt management company.
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