British homeowners are setting their house prices too high

British homeowners are setting their house prices too high, over-estimating the value of their property.

According to research by Abbey Mortgages, on average homeowners are over valuing their homes by more than £35,000.

Across all regions homeowners estimate their house price higher than that suggested by the official industry figure from the Land Registry.

Homeowners are still optimistic about their house prices, despite the fact that official industry stats show that the average property value has dropped by £30,000 + since the start of 2008.

Abbey Director of Mortgages, Nici Audhlam-Gardiner, said ‘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.’

The value of a property is used to assess the Loan to Value (LTV) ratio for mortgages, hence the need for it to be accurately assessed.

The best interest rates and mortgage deals are offered for lower LTV percentages – for those with a greater deposit.

Abbey last week increased the LTV percentage on its fixed rate mortgages.

This week it is also launching two new mortgages at 85% LTV, including a 5 year fixed rate mortgage at 5.79%.