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| Version 0 | Version 1 |
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| Rise in lenders valuing homes below sale price | Rise in lenders valuing homes below sale price |
| (about 11 hours later) | |
| There has been a "significant" rise in homes being valued at less than what buyers have agreed to pay, the UK's largest mortgage advisers have said. | There has been a "significant" rise in homes being valued at less than what buyers have agreed to pay, the UK's largest mortgage advisers have said. |
| These "down valuations", by lenders, can mean buyers having to pay thousands of pounds extra, up front, to avoid the sale collapsing. | These "down valuations", by lenders, can mean buyers having to pay thousands of pounds extra, up front, to avoid the sale collapsing. |
| Estate agents Emoov said it reflected surveyors predicting a financial crash. | Estate agents Emoov said it reflected surveyors predicting a financial crash. |
| UK Finance said lenders, which it represents, were right to ensure property values were realistic. | UK Finance said lenders, which it represents, were right to ensure property values were realistic. |
| The organisation said borrowers also benefited from houses having an "independent valuation". | The organisation said borrowers also benefited from houses having an "independent valuation". |
| 'Covering their backs' | 'Covering their backs' |
| The mortgage advisers London and Country told the BBC's Victoria Derbyshire programme that the number of its advisers seeing down valuations on a daily basis now "outweighs" those who do not. | The mortgage advisers London and Country told the BBC's Victoria Derbyshire programme that the number of its advisers seeing down valuations on a daily basis now "outweighs" those who do not. |
| Emoov, one of the UK's largest digital estate agents, said one in five of its sales now resulted in a down valuation. | Emoov, one of the UK's largest digital estate agents, said one in five of its sales now resulted in a down valuation. |
| Two years ago, it was fewer than one in 20, it added. | Two years ago, it was fewer than one in 20, it added. |
| This is the highest rate since the UK's financial crash in 2008, according to agents from 10 mortgage adviser groups contacted by the Victoria Derbyshire programme. | This is the highest rate since the UK's financial crash in 2008, according to agents from 10 mortgage adviser groups contacted by the Victoria Derbyshire programme. |
| Emoov's chief executive Russell Quirk said he believed it was the result of surveyors - who carry out the property valuations for the mortgage providers - "simply covering their backs". | Emoov's chief executive Russell Quirk said he believed it was the result of surveyors - who carry out the property valuations for the mortgage providers - "simply covering their backs". |
| He added: "Surveyors are prophesying a [financial] crash. The system is built to protect them." | He added: "Surveyors are prophesying a [financial] crash. The system is built to protect them." |
| Down valuations | Down valuations |
| Ebony Roberts and her fiancee Jalisa Andrews, from Port Talbot in South Wales, have experienced two down valuations while trying to buy their first home together. | Ebony Roberts and her fiancee Jalisa Andrews, from Port Talbot in South Wales, have experienced two down valuations while trying to buy their first home together. |
| "We got right through to the very end stages of buying a house we had our hearts set on... but then we had a problem when the mortgage valuation came back," Ms Roberts said. | "We got right through to the very end stages of buying a house we had our hearts set on... but then we had a problem when the mortgage valuation came back," Ms Roberts said. |
| "We had a down valuation of £10,000. The seller would not drop their price, so we lost that house." | "We had a down valuation of £10,000. The seller would not drop their price, so we lost that house." |
| Then it happened again, on another property. | Then it happened again, on another property. |
| Worried they would lose that house too, they borrowed £5,000 from family members at short notice. | Worried they would lose that house too, they borrowed £5,000 from family members at short notice. |
| "Our broker even said, 'You're having a bad run,'" explained Ms Andrews. | "Our broker even said, 'You're having a bad run,'" explained Ms Andrews. |
| Those remortgaging their houses after doing renovation work are also among those most affected by down valuations. | Those remortgaging their houses after doing renovation work are also among those most affected by down valuations. |
| Phil Broodbank, from Wirral, bought his house for £180,000 a few years ago and spent up to £25,000 renovating it. | Phil Broodbank, from Wirral, bought his house for £180,000 a few years ago and spent up to £25,000 renovating it. |
| When the time came to remortgage, a surveyor valued his house at £200,000 without visiting it in person - in what is known as a "drive by". | When the time came to remortgage, a surveyor valued his house at £200,000 without visiting it in person - in what is known as a "drive by". |
| This valuation was £20,000 lower than a local estate agent had valued the property. | This valuation was £20,000 lower than a local estate agent had valued the property. |
| Mr Broodbank blames the surveyors for what happened. | Mr Broodbank blames the surveyors for what happened. |
| "They didn't actually take a look at the property. For all they know the inside could be a complete shell." | "They didn't actually take a look at the property. For all they know the inside could be a complete shell." |
| The surveyor's valuation would have meant Mr Broodbank paying around £50 a month extra on his mortgage over five years, as his interest rates would have been higher. | |
| Instead, he says he lost hundreds of pounds in fees by choosing to go with another bank, who valued his property at £220,000. | Instead, he says he lost hundreds of pounds in fees by choosing to go with another bank, who valued his property at £220,000. |
| UK Finance, which represents the banking industry, said: "Lenders have a responsibility to ensure that the value of property taken as security on mortgage loans is current and realistic. | UK Finance, which represents the banking industry, said: "Lenders have a responsibility to ensure that the value of property taken as security on mortgage loans is current and realistic. |
| "Although the valuation is carried out for the lender, borrowers also benefit from a realistic independent valuation as it could help them avoid paying over the odds for the property they are buying." | "Although the valuation is carried out for the lender, borrowers also benefit from a realistic independent valuation as it could help them avoid paying over the odds for the property they are buying." |
| Watch the BBC's Victoria Derbyshire programme on weekdays between 09:00 and 11:00 on BBC Two and the BBC News Channel in the UK. | Watch the BBC's Victoria Derbyshire programme on weekdays between 09:00 and 11:00 on BBC Two and the BBC News Channel in the UK. |