Poor valuations put UK debt management at risk
Poor valuations put UK debt management at risk
- Thursday, 21 May 2009National debt management efforts could be being put at risk as homeowners overestimate the amount of equity they hold in their property.
Figures from Abbey show that the average homeowner believes their house to be worth some £37,280 more than Land Registry statistics suggest.
UK debt management efforts could be hampered as a result if these homeowners were to look to release such equity to help pay off debts.
Nici Audhlam-Gardiner, director of mortgages at Abbey, says: "Homeowners looking to remortgage or sell their homes in the near future need to make sure that the value of their home is accurate."
She adds that a more direct impact on
national debt management could arise if homeowners find when remortgaging that the falling worth of their home has pushed them into a higher loan-to-value ratio bracket with less favourable interest rates.
Her comments follow the publication of statistics by the Land Registry at the end of April, which noted a 16.2 per cent drop in typical valuations year-on-year and a 0.4 per cent monthly fall in the latest report.

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