cypher007 Posted September 22, 2009 Share Posted September 22, 2009 (edited) 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 September 22, 2009 by cypher007 Quote Link to comment Share on other sites More sharing options...
wonderpup Posted September 22, 2009 Share Posted September 22, 2009 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. Quote Link to comment Share on other sites More sharing options...
cypher007 Posted September 22, 2009 Author Share Posted September 22, 2009 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. 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 . Quote Link to comment Share on other sites More sharing options...
ingermany Posted September 22, 2009 Share Posted September 22, 2009 "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! Quote Link to comment Share on other sites More sharing options...
cypher007 Posted September 22, 2009 Author Share Posted September 22, 2009 (edited) "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 September 22, 2009 by cypher007 Quote Link to comment Share on other sites More sharing options...
cypher007 Posted September 22, 2009 Author Share Posted September 22, 2009 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. Quote Link to comment Share on other sites More sharing options...
Bumble Dumb Posted September 22, 2009 Share Posted September 22, 2009 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. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 22, 2009 Share Posted September 22, 2009 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. Quote Link to comment Share on other sites More sharing options...
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