Wednesday 20th of May 2009
Homeowners hoping to consolidate debts by securing a loan against their property could find that they get less than they hoped, fresh research has indicated.
According to Abbey, Britons are significantly overvaluing their homes, which may lead to a shock when it comes to remortgaging.
The bank’s survey found that the typical homeowner estimates their property to be worth £37,280 more than the Land Registry’s average house price.
Director of mortgages Nici Audhlam-Gardiner noted that the reality could cause disappointment down the line, stating: "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."
Those who are struggling to obtain secured finance due to falling house prices may wish to seek non borrowing advice to help manage their debts.
Indeed, Moneyfacts.co.uk has revealed that just three providers of secured loans remain in the marketplace.
