Down valuations affecting increasing number of home sales

Down valuations are being blamed for an increase in abandoned house sales, with property experts reporting huge differences between home sellers' asking prices and formal valuations. According to online broker Mojo Mortgages, down valuations affected 12.8% of all house purchase mortgages in April, up from 10.4% during the same period last year. Richard Hayes, co-founder and chief executive of Mojo Mortgages said the problem is also affecting property owners trying to remortgage. He added that down valuing on remortgages has fallen in recent months, but is much higher than for purchase mortgages, standing at 15.4% in April. A rise in down valuations is sometimes seen as a precursor to a price crash, "[But] our data is not showing this to be the case. We believe it is more likely to be people trying to take advantage of a buoyant market and not quite getting it right." 

I (28/06/2022)