| Comment | >I know what you're saying makes sense to you, but you're missing how the value plays into the market.
lol I know what you are saying makes sense to you, but "markets" exist in every other country in the world and the very idea of "value" is fundementally tied to being within a market. Do you not think London has competition? What is the "inherent values" of a house based on if not the market, how much the bricks cost?
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>It isn't a great situation for us buyers, but I'm afraid that valuation = sale price isn't accurate and would make things worse.
This is how things work in every other country and it is far far far better, the main result of the current system is excluding first time buyers without access to a large amount of cash.
As clarified in another comment, it has absolutely nothing to do with the banks risk evaluation, literally the same banks offer mortgages across England and Scotland.
One of the strangest things about this system (or reddit) is peoples ability to defend it without either understanding it or being able to give any specific benefit while ignoring the very obvious flaws |
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