Lenders’ valuers continue to downvalue properties so the fall in house prices is a self-fulfilling prophecy. This will continue to be the case until lenders decide to grant 90% LTV mortgages.
I say grant rather than offer, as it appears that the lenders offering 90% LTV mortgages are doing so merely as a sop to the government, but then not actually offering many deals at 90% LTV. Still, I guess it keeps Prime Minister Gordon Brown happy.
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