Increase in the homes for a value less than the sale price

There was a significant increase in homes being valued at less than what buyers have agreed to pay, the UK’s biggest mortgage consultants said.

These “down-valuations”, by the institutes of credit, it can mean buyers having to pay thousands of pounds extra, up front, to avoid the sale collapsing.

Real estate agents Emoov said that reflects surveyors forecasting a financial collapse.

UK Finance said that lenders, that is, were just to ensure the property values are realistic.

The organization has said borrowers also benefited from the houses that have an “independent assessment”.
To cover the shoulders”

The mortgage advisers London and Country told the BBC’s Victoria Derbyshire programme that the number of his counselors see down assessments on a daily basis now “exceeds” those who do not.

Emoov, one of the UK’s largest digital real-estate agents, has said that a fifth of sales today has resulted in a down rating.

Two years ago, it was less than one in 20, he added.

This is the highest rate since the UNITED kingdom, the financial crisis in 2008, according to the agents 10 mortgage consultant groups contacted by the Victoria Derbyshire programme.

Emoov chief executive Russell Quirk said that he believed it was the result of surveyors – who perform property valuations to the mortgage providers – “just looking back.”

He added: “the Inspectors are prophesying a [financial] crash. The system is built to protect them.”

Down the ratings
After the buyer accepts the price of the home with the seller, the mortgage provider uses a surveyor to verify what they believe the house is worth.
The surveyor employed by the mortgage provider, look at the selling price of similar properties in the local market conditions in the area, and the current condition of the property.
If the surveyor believes that the home is worth less than the agreed sale price, say £ 10,000, this is known as a “down valuation”.
This means that if the buyer cannot negotiate a new price for the house with the seller, who will have to find the extra £10,000 in front of or at risk of losing the house.
Those with the smallest of deposits, and that have remortgaged their house after renovations are most likely to be affected by down ratings.
Down the assessments are being blamed for an increase in housing chains break down throughout the UK.

Ebony Roberts and his girlfriend Jalisa Andrews, from Port Talbot in South Wales, have had two assessments during the attempt to purchase their first home together.

“We got right up to the last stages of buying a home, we have had our hearts… but then we had a problem when the mutual evaluation is returned,” Ms Roberts said.

“We had a down valuation of £ 10,000. The seller would not drop their prices, so we lost the house.”

Then it happened again, in another property.

Worried that it might lose that house, too, have borrowed £5,000 members of the family with a short notice.

“Our broker has also said, ‘You’re having a bad time,'” said Ms Andrews.

Those remortgaging their homes after renovations are also among the most affected by the drop in ratings.

Phil Broodbank, from Wirral, has bought his house for £180,000 a couple of years ago and has spent up to £25,000 renovating it.

When it came time to remortgage, the surveyor valued the house at £ 200,000, without visiting it in person, in what is known as a “drive by”.

This value was £20,000 less than a local estate agent had valued the property.

Mr. Broodbank accusation of surveyors for what happened.

“There was, in fact, take a look at the property. Everyone knows that the inside could be a complete shell”.

The surveyor assessment would have meant Mr. Broodbank have to pay about £50-a-month for his mortgage over five years, as the interest rates would have been higher.

Instead, he says he lost hundreds of pounds in fees by choosing to go with another bank, which has valued his property at £220,000.

UNITED kingdom Finance, which represents the banking industry, said: “lenders have a responsibility to ensure that the value of the property taken as security for mortgage loans is current and realistic.

“Even if the evaluation is done for the lender, the borrowers also benefit from a realistic evaluation, independent, how could you avoid paying more than they should for the property they are buying.”

Watch the BBC’s Victoria Derbyshire programme on weekdays from 09:00 to 11:00 on BBC Two and the BBC News Channel in the UNITED kingdom.