Uniform valuing system 'necessary to sell mortgages fairly'

Posted: 12 Jan 2010 10:24:19 GMT

It is necessary to have a uniform valuing system in place for banks which have bad debt on their books in order for mortgages to be sold on a fair basis, one expert states.

Katie Tucker, technical manager at mortgageforce, says that this will mean new home loans will be "sold at a trustworthy price on the securitisation market".

She adds that the market needs to return to good health during 2010 so that higher loan-to-value mortgages will be more widely available.

If banks openly declare their bad debts it will restore faith in the home loan market, Ms Tucker goes on to state.

Recent statistics from moneysupermarket.com have revealed that fewer 95 per cent loan-to-value deals were available during 2009 than they have been in previous years.

Some 36 mortgage products of this type were on the market in the month of January 2009 but this figure fell to just nine in the last month of the year.

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