House Lenders

It said that borrower also profited from homes with an "independent valuation". Emoov, one of the UK's biggest real estates brokers, said that one in five of his disposals now resulted in a devaluation. That is the highest since the UK 2008 finance crisis, according to representatives from 10 UK Hypothekenberater groups approached by the Victoria Derbyshire Program.

Emoov's CEO, Russell Quirk, said he believes that it is the outcome of appraisers who perform real estate appraisals for mortgages companies - "simply backing their backs". "It is therefore quite possible that the lender's value - the fair value - may not correspond to an offer value for a real estate asset determined by the vendor or broker.

" Once a purchaser has agreed the house with a vendor on the asking prices, the lender uses an expert to verify what he believes the house is worth. What is more, the lender can use an expert to verify what he believes to be the value of the house. An appraiser working for the lender considers the selling prices of similar real estate on the spot, local economic circumstances and the state of the real estate.

When the appraiser thinks that the house is less valuable than the selling rate, say around £10,000, this is referred to as "down valuation". This means that if the purchaser cannot bargain a new house purchase with the vendor, he must find the additional 10,000 in advance, otherwise he risks loosing the house.

The ones with the lowest deposit and who have burdened their house again after a refurbishment are most likely to be affected by devaluations. Downward ratings have been held responsible for an increased number of collapses in residential networks across the UK. Two downward ratings were witnessed by Ebony Roberts and her fiancée Jalisa Andrews of Port Talbot in South Wales as they tried to buy their first house together.

"But then we had a situation when the mortgages came back," said Mrs. Roberts. "of £10,000. Vendor wouldn't lower his prices, so we lose the house.

" And then it happens again, on another piece of land. Concerned that they would also loose this house, they lent 5,000 from members of the families at the last minute. People who remord their homes after refurbishment are also among those most affected by devaluations. From Wirral, Phil Broodbank purchased his house a few years ago for 180,000 and spend up to 25,000 pounds on refurbishment.

As it was approaching the point of remittance, a surveying man estimated his house at 200,000 pounds without personally attending - in a so-called "drive by". It was £20,000 lower than a real actor had rated the realty. "You didn't really take a look at the grounds.

" Assessing the expert would have implied that Mr Broodbank would have paid an additional 50 per cent per annum over five years for his mortgages as his interest rate would have been higher. Instead, he says he has dropped hundreds a pound in charges by deciding to go with another bench that has valuated his belongings at £220,000.

"It is the lenders' duty to make sure that the value of real estate used as collateral for mortgages is up-to-date and real. "Even though the evaluation is done for the creditor, the borrower also benefits from a real estate appraisal, as they could prevent themselves from having to pay over the quotas for the real estate they have bought.