The Finance Owl

Banks – Loans – Mortgages – Money

Nationwide Building Society Cut Mortgage Valuations

Posted by admin July - 2 - 2009 - Thursday

Nationwide Building SocietyThe Nationwide Building Society, which is one of the UK’s top tier building societies, has allegedly been cutting back the mortgage valuations of new builds within the UK housing market.  The newspaper allegations imply that Nationwide is asking for mortgage valuations receive by the building society should be at a valuation which is less than the official purchase price valuation.  There have been numerous reports provided by analysts that house builders in the UK have been offering discounts of upto 30% as the builders struggle to maintain cash-flow and liquidity.

The problems faced by UK Building Societies is not unique, there have apparently been similar practices taking place across the US and other parts of the globe.  It appears that unsurprisingly many house builders are struggling to maintain a decent cash-flow in order to avoid the banks and creditors stepping in on the grounds of cash liquidity.

For now it appears that the alleged Nationwide Building Society cuts to UK house builders mortgage valuations seems a sensible approach.  It certainly seems appropriate when one considers the challenges faced by the new house builders across the globe, especially in the UK and the US which have been harshly hit by the economic credit crunch.

Related posts:

Comments are closed.