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Undervaluing Affecting Home Sales
An interesting report was released recently by the National Association of Estate Agents that claimed property sales and remortgage deals are collapsing because some mortgage lenders and surveyors are deliberately undervaluing homes.
It said that properties were being typically undervalued by 10% as surveyors were being over-cautious as a result of them being afraid of being sued by lenders.
Tony Rice, of Bedfordshire-based specialist mortgage and insurance brokers TMP Mortgage Zone, said: "Luckily my customers haven't been too badly affected by this, but it has happened occasionally recently. It is probably a result of the credit crunch and more cautious approach to lending, but in instances were this does happen, it could be beneficial for purchasers or those remortgaging to pay for an independent valuation - especially if it keeps the deal alive."
[ 20-08-2009 ]
