Falling house prices 'create a moral dilemma'

Falling house prices are creating a "terrible moral dilemma" for those looking to take out a mortgage and buy a new property, according to an expert.

Donna Werbner, property expert at Fool.co.uk, made the comment after research by the website found that 94 per cent would consider gazundering if a survey of a property found that repairs were needed.

It was also found that a third of people feel it would be acceptable to gazunder if a property fell in price between the offer and exchange.

Gazundering is described as when a buyer decides to lower its offer for a home as contracts are exchanged.

Ms Werbner said: "Falling house prices create a terrible moral dilemma for buyers. If they don''t gazunder, they could potentially find their property has fallen in value before they have even bought it.

"It all boils down to what you value more highly: your morals, or more cash in your pocket."

Research released by Fool.co.uk last month found that many mortgage borrowers are facing a jump in mortgage rates when they come off fixed rate deals this year.

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