Last month the Welsh government announced it was dropping its NewBuy scheme which was designed to help people get high loan-to-value mortgages and would have supported the creation of 3, 000 homes.

BBC: Social housing: Welsh government's annual ?4m for 30 years

With borrowing rates so high, loan-to-value ratios on houses can be twice as much as a home's market value, whereas in a more balanced market they would be at 75%.

FORBES: Emerging Markets

Because the appraisal didn't lower his loan-to-value ratio, and despite his high credit score, Mr. Lattas says he's going to end up with a mortgage rate that's a quarter of a point more expensive than the lowest rates available.

WSJ: The Appraisal Betrayal | Jumbo Jungle