UK properties 'overvalued'

21-May-2009

First-time buyers may find they have more negotiating power after research from Abbey Mortgages revealed that UK homeowners overvalue their properties by thousands of pounds.

Despite Land Registry figures indicating that the average cost of housing in England and Wales is £152,895, mortgage holders think their homes are worth an average of £190,175.

That is a difference of more than £37,000, and suggests that vendors are over-confident about the value of bricks and mortar in the current economic climate.

Nici Audhlam-Gardiner, director of mortgages at Abbey, remarked: "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 [ensure it] has been valued by professionals."

House sellers can avoid disappointment and problems in the moving process by following this guidance early on, she added.

Meanwhile, Lloyds TSB has launched a new mortgage product this week - just for first-time buyers.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

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