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Mortgage Valuations - What happens?

Posted on Wednesday, June 25, 2014

We get asked questions quite often about the process of valuations carried out on behalf of the mortgage lender. Sometimes there seems to be a little bit of missing information that is not provided to customers when they first apply to move ahead with a mortgage, so the following is designed to hopefully fill in some of the blanks.

 First Steps

So, you've decided to go ahead with the mortgage, filled in the relevant forms for your lender, and then you sit back and wonder what happens next?/how long you have to wait?/is there anything else you should do?

There are several things happening to your application at this point and one of the first (after initial credit checks etc) will be for a surveying firm to be asked to inspect the property to state whether it is suitable security to lend upon.



The Instruction Stage

Your bank/mortgage lender will usually work through a Panel Manager when finding a surveying firm. The Panel Managers are larger companies who have several surveying firms available for accepting work.

On receiving the instruction for your property, the Panel Managers contact each of the surveying companies that cover the local area in which the property is, to find out who can carry out the appointment at the earliest date. If we can complete the appointment on a day earlier than anyone else, we are sent the instruction through and expected to book it for this date (or earlier) unless circumstances dictate otherwise.

Our appointment schedulers will contact either the estate agent, current vendor (or yourself in the case of a remortgage) to arrange the appointment. We always provide a window of time (the bigger the better) for our surveyors as this allows them to plan their day and their route for appointments to make it as economical as possible. Appointments always occur in a morning too as we are required to send all the information back to the banks in the afternoon.

When the appointment date arrives, our surveyor will arrive at the property to carry out the inspection. Different mortgage lenders have different guidelines as to what they expect the surveyor to do. For example, some ask for a head and shoulders inspection of the roof space whereas others do not. The mortgage valuation report is a very basic report and only provides the basic information required for the lender to either go ahead or not.

Our surveyors will then send their dictation over a mobile system to our typists (often while still sitting in their car outside the property), who make sure they type it up ready for when the surveyor is back at the office in the afternoon.


Back In The Office

The report will now have been typed using the surveyors dictation. It will be checked and the surveyor will make sure that all information is present and correct, and will also be double checking comparable evidence of sold properties within close proximity of the subject property that are of similar style, condition and age. This evidence goes towards providing the valuation figure.

Once the report is ready, the surveyor will submit it on our computer system which is linked to the Panel Manager. This sends the report electronically on the same day so that the banks/mortgage lenders have the information they require as soon as possible. Very occasionally, there may be a delay in submitting the report if the surveyor needs to research an element of the property. We always keep the lender informed of any delays however.

Please note that with the majority of lenders, we cannot provide you with a copy of this mortgage valuation as their guidelines do not allow us to, nor are we allowed to discuss the content with applicants.


Back With The Lender

Your mortgage provider will be in touch with the outcome of the survey and either offer you the mortgage, inform you of a reason for declining it, or request further information.

If there are any discrepancies with the report or information that comes to light via solicitors after the inspection has taken place, then a Post Valuation Query (PVQ) will need to be raised with the lender. This will then be sent via the Panel Manager directly to ourselves and our surveyor will review the information and respond (usually within 24 hours).


And Finally...

Our team at Pinnacle Surveyors will always be happy to help in any way they can if you have further queries, please see our contact page. Alternatively please take a look at our FAQ page on the website which answers some of the other questions you may have.