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cypher007

I Dont Get This

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maybe the Halifax recon houses are going to fall another 25-35%? but i cant see how this problem equates to the mortgage costing more. surely if the Halifax undervalues a property your going to buy you just offer the vendor the new valuation. ahh is that it, people still want to buy the house but need to find more capital to cover the shortfall?

http://www.e1buytoletmortgages.co.uk/news/...rties-2850.html

Edited by cypher007

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A lot of people are outraged to discover that the bank won't let them take on as much debt as they would like- I guess it infinges their human right to be total muppets or something. :lol:

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A lot of people are outraged to discover that the bank won't let them take on as much debt as they would like- I guess it infinges their human right to be total muppets or something. :lol:

your right, surely if the mortgage lender doesnt think its worth X you dont then carry on buying it at the inflated Estate Agent/Vendors loony Y valuation :blink: .

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"UK mortgage brokers say they are shocked to see Halifax massively doing things like this, "

Was the article written by Vicky Pollard?

No, but, yeah, but, no, but, yeah, but, no, but Oh, my God! That is so unfair!

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"UK mortgage brokers say they are shocked to see Halifax massively doing things like this, "

Was the article written by Vicky Pollard?

No, but, yeah, but, no, but, yeah, but, no, but Oh, my God! That is so unfair!

would this be the same mortgage brokers who usually sit in the back of the estate agents office, like a spider in a web, hoping some young noob ftb's might walk in.

Edited by cypher007

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The same people cannot see that the bank is telling them the property may not be worth what it is now in six months time.

+1 this just sounds like the Halifax being realistic for a change.

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maybe the Halifax recon houses are going to fall another 25-35%? but i cant see how this problem equates to the mortgage costing more. surely if the Halifax undervalues a property your going to buy you just offer the vendor the new valuation. ahh is that it, people still want to buy the house but need to find more capital to cover the shortfall?

http://www.e1buytoletmortgages.co.uk/news/...rties-2850.html

It was confusing me too, but I think that they are referring to people looking to remortgage their property in the example. If I have a house 'worth' £200,000 and I want to take out a mortgage of £120,000 on it, then I have 40% equity in the property. I ask Halifax for a mortgage and they value the property at £130,000. Now I only have £10,000 of equity which is not even 10% of the loan.

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Not only this under-pricing policy increases the cost of mortgage borrowing, it also prevents borrowers from qualifying for bank’s best mortgage deals.

It's about forcing people onto higher rate deals to repair it's balance sheet.

Thanks got it's not a govt owned bank ripping off hard working families.

It must also indicate where they think house prices are going.

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