| Comment | Unfortunately mortgage companies and banks have a legal responsibility (lol - I know, when it fucking suits them, right? But still) to lend money on tangible assets rather than market speculation.
If the competition is forcing people to pay over the value for a property, that's not a guarantee that will happen every time. If the value comes in at £210 and people pay £250, the mortgage company legally can't mortgage it at £250 in case maybe there aren't enough buyers to push the price up.
You have to separate "value" from market price, because the value is more fixed (besides inflation/degradation) and the market more fluctuating. Not saying its nice, but it's how markets work. |
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