View more on these topics

Hometrack offers a safeguard against overvaluation risks

Automated valuation model provider Hometrack has launched Failsafe – a product aimed at safeguarding mortgage lenders against the risk of residential property overvaluations.

David Catt, Hometrack’s chief operating officer, said: “By using our AVM which is impartial and supported by the country’s most comprehensive comparable database, it is possible to derive objective and consistent valuations at all times, even under current market conditions.”

The present low level of housing transactions, together with a shift in the proportion of new-build forced sales and repossessions, is giving rise to an increased risk of inadvertent and even fraudulent overvaluation which in turn is leading to greater risk and hence losses for lenders.

According to the latest estimates, some £200m will be lost through mortgage repossessions from originations in 2009 alone.


Think twice before turning clients away

Shoe shops are having a tough time as the economy wallows in recession but as retailers suffer, cobblers are experiencing a boom.

MTE doubles market share

The Mortgage Trading Exchange has doubled its market share of all mortgage transactions processed in the UK in the past 12 months.


News and expert analysis straight to your inbox

Sign up