New Abbey research suggests homeowners could have difficulty selling or remortgaging their properties because they are being valued too highly.
Britons could be overestimating the price of their homes by upwards of £35,000, making selling or remortgaging the property extremely difficult.
According to a new study from Abbey, the average UK homeowner puts the value of their home at £190,175. However, this is £37,280 too high when compared to official prices from the Land Registry, which suggest that the average price is £152,895.
"Homeowners looking to remortgage or sell their homes in the near future need to make sure that the value of their home is accurate and has been valued by professionals to avoid problems or disappointment further down the line," warned Nici Audhlam-Gardiner, Abbey director of mortgages.
"As house prices continue to fall, the longer a customer delays on SVR [standard variable rate], the more they risk that the good rates are out of reach to them due to fall in value of their home and the increase in their loan-to-value."
Consumers in the east and the south-east of England were found to be the most optimistic about the value of their home. People living in these regions had overestimated by £53,422 above the Land Registry price.
People in London had the most realistic idea of prices, averaging just £22,784 over the official total.
