Mortgage Valuations and Surveys
Here you'll find details on what mortgage valuations and surveys are, why they are needed for a mortgage application and how much they can cost.
BANK RATE ANNOUNCEMENT
On 2 November 2017, the Bank of England announced that the Bank Base Rate would increase with immediate effective from 0.25% to 0.50%.
This provides us, the lender with guidance on what the property is worth. It applies to all mortgage applications, including house purchases and remortgages.
This report looks mainly at urgent matters which may need attention and it includes a standard valuation. However it doesn't detail everything about a property.
A detailed and comprehensive report to highlight faults and advise on any necessary repairs - a valuation is not included.
Before we can lend to you, we need to assess how much the property is worth by carrying out a valuation. This lets us know that the property provides adequate security for you loan and we also use it to calculate your Loan to Value or LTV (the proportion of your mortgage loan compared to the property value).
A valuation is needed for remortgage applications as well as house purchase applications.
You should be aware that the valuation is not a survey and will not provide you with details of any issues with the property or possible repairs. We therefore strongly recommend that you obtain either a Homebuyer Survey or a Building Survey to give you a more detailed inspection of the property.
In some circumstances we may ask the valuer to carry out a quick check of the outside of the property (known sometimes as a drive-by valuation). When this applies, a standard mortgage valuation can be requested at a later date and you will need to cover the cost of this.
If a full internal inspection has been carried out you will normally receive a copy of the valuation report.
Please be aware that this is not a survey and as such, will not provide you with an indication that the property is worth what you are paying for it or a list of potential repairs.
If you have applied for a fee-assisted mortgage product you may not receive a copy and you will not receive a copy if we carry out a drive-by valuation (AVM), carry out a database valuation or a Property Assessment.
You'll need to pay a fee during your application to cover the cost of carrying out the valuation. If you have chosen a fee-assisted mortgage there is no cost for the valuation.
Unless you tell us otherwise, we will instruct the valuation as soon as we begin to process your application (providing the fee has been paid). Once a valuation has been carried out, we can't refund the fee even if your mortgage does not go ahead.
View a breakdown of valuation fees (including the cost if you decide to opt for a Homebuyer Survey which includes the cost of a standard mortgage valuation).
If the property gets valued below the potential purchase price (or what it was valued at originally) this may mean that you no longer qualify for a product with a specific LTV. Under these circumstances you will have to switch to another mortgage product with a higher LTV, or it may mean that we are unable to offer you a mortgage. There is no cost for switching to another product in this scenario.
It is essential that you are as accurate as possible when providing us with an estimated value of the property as you will not receive a refund of any mortgage application processing fee or valuation fees if we are unable to offer you a mortgage after your mortgage valuation.
If you are an existing mortgage customer there are some scenarios where we may need to carry out a new valuation (or ‘revaluation’) of your property. This includes when you are transferring to a new mortgage product or you’d like to take out an additional loan.
To find out more about the revaluation process, please call us on 0345 166 9300*.
A non-refundable fee of £70 may be payable for revaluations on additional loan application. This fee is payable in full at application and cannot be added to the loan amount.
The Homebuyer Survey is suitable for most conventional properties which are in a reasonable condition and focuses on any matters which need attention. The Homebuyer Survey contains details which can help you make an informed judgement on whether or not you should purchase a property and whether or not the purchase price is reasonable. It will also give you a good idea of any issues which need to be discussed or actions which should be taken prior to contracts being exchanged. You should be aware that it doesn't detail every aspect of the property but the following details are included:
A standard valuation is included with this survey.
This is a detailed and comprehensive reported which can be tailored to suit your needs and is suitable for all residential property types (including period properties, those with extensive accommodation or in a particular state of repair), covering all defects whether minor or major. There is no standard scale of fees for a Building Survey but the cost is higher than the Homebuyer Survey. You should be aware that a valuation is not included but this can be arranged directly with the surveyor and will be required for us to process your mortgage application. The surveyor will contact you to discuss the details before he starts the survey.
We may allow the same surveyor to prepare a mortgage valuation based on the results of the survey (a transcript). The same surveyor must be a member of the Society's approved panel and we won't accept a transcript of a Home Buyer Report or Building Survey Report that has been carried out by a valuer that has not been approved by the Society. If we agree to allow your valuer to prepare a mortgage valuation report for us, and he agrees to do so, there will be a fee of £55. This includes payment to the valuer for the report and VAT.