Lower home valuations reflect "softer" market
29 August 2008
Valuations of people's property when looking to release equity reflect a "softening of the market" according to an expert.
Director of lifetime mortgages at Prudential, Keith Haggart, said the amount people's homes were valued at could leave them "slightly disappointed" but that they could still have the same amount of mortgage they asked for.
He went on to say that a home owner who was expecting their home to be valued at £200,000 but it came out at £180,000 could still borrow the same amount of money as they intended to before.
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Mr Haggart pointed out that what properties are on the market for and what they end up selling for are two different things, which in the current market has "never been truer".
This month figures from Prudential showed that UK homeowners aged 65 and above had £726.43 billion of equity in their homes.
In related news, the Hodge Equity Release, which provides equity schemes that allow owners to continue to live in their homes, told the Financial Times they had seen a 75 per cent increase in enquires in the past three months.
