(PRWEB) August 14, 2009
When it comes to valuing their homes, British homeowners are in danger of over-estimating prices by as much as £35,000 or more, according to research from Abbey Mortgages.(1)
The research shows that on average homeowners estimate their home to be worth £190,175. This is an over-estimate of £37,280 when compared to official Land Registry house price figures, which puts today's average house price at £152,895.(2)
Despite falling house prices, homeowners across all regions of the country estimate their homes to be worth more than industry figures would suggest. Those living in the East and the South East of the country are the most optimistic about the value of their properties, with these homeowners estimating their homes to be worth a massive £53,422 above Land Registry estimates.
Property prices have been hit badly by the credit crunch and while official industry stats show the average property value has dropped by over £30,000 since January 2008 (3), Abbey Mortgages research suggests that homeowners across the country remain optimistic and resolute about the value of their home.
Nici Audhlam-Gardiner, Abbey Director of Mortgages, commented: "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 to avoid problems or disappointment further down the line. As house prices continue to fall, the longer a customer delays on SVR, the more they risk that the good rates are out of reach to them due to fall in value of their home and the increase in their loan-to-value."
For those looking to remortgage, Abbey currently has a range of mortgages offering the lowest fixed rate mortgages in 10 years.(4) The range of competitive 75 per cent LTV deals is available through the branch or over the telephone for a limited time only. The rates include a 3-year fix at 4.09 per cent, a 7-year fix at 4.99 per cent and a 15-year fix at 5.38 per cent all with a £995 fee and a maximum loan size of £250,000. There is also a special offer of 20 per cent off home insurance when you take an Abbey Mortgage.
For more information log on to http://www.abbey.com, telephone 0800 389 9890 or visit your local branch.
The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
Notes to Editors
1) Opinium Research carried out an online poll of 2,129 British adults from Tuesday 10 and Friday 13 February 2009.
2) Land Registry stats:
3) Land Registry stats:
Average house price in January 2008 was £186,045.
4) All three of these products have previously been available at higher rates in our branches. Previous rates were 3-yr 4.14% - March 2009, 7-yr 5.14% - April 2006 and 15-yr 5.39% - March 2007.
Santander (SAN.MC, STD.N) is a retail and commercial bank, based in Spain, with operations in more than 40 countries. At the end of 2008, Santander was the largest bank in the euro zone by market capitalization and third in the world by profit. Founded in 1857, Santander had EUR 1,168 billion in managed funds at the end of 2008. Following the acquisition of Sovereign Bancorp. of the U.S. in January 2009, Santander has 90 million customers, more than 14,000 branches - more than any other international bank - and over 180,000 employees. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal and a broad presence in Europe through its Santander Consumer Finance arm. In 2008, Santander registered €8,876 million in net attributable profit, an increase of 9% from the previous year excluding capital gains.
In the UK, Santander operates three retail businesses - Abbey, Alliance & Leicester and the savings business of Bradford & Bingley. Together they have over 1300 branches, around 4,500 cash machines and they provide a full range of retail and corporate banking services to 24 million customers.
Lara Lipsey Tel: 020 7756 4209 Mobile: 07920 700 732
Siobhan O'Shea Tel: 020 7756 4209
The Abbey press office operates from 8.00am to 6.00pm. Outside of these hours please call 0800 5877708.
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