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  • FIRST POST
    • Smithy45
    • By Smithy45 22nd Sep 16, 8:05 PM
    • 4Posts
    • 2Thanks
    Smithy45
    Remortgage valuation too low! ??Scam??
    • #1
    • 22nd Sep 16, 8:05 PM
    Remortgage valuation too low! ??Scam?? 22nd Sep 16 at 8:05 PM
    Hi
    Does anyone know what measures are in place to prevent mortgage companies employing their own surveyors who may significantly de value a property in order to force you onto a higher interest rate by increasing the ltv?
    Also, if the valuation is so low that the mortgage is no longer appealing and I decline it, how do I get that company's credit search footprint removed from my credit history.
    Many thanks
    :{
    Last edited by Smithy45; 22-09-2016 at 8:16 PM.
Page 1
    • Thrugelmir
    • By Thrugelmir 22nd Sep 16, 8:17 PM
    • 49,929 Posts
    • 41,598 Thanks
    Thrugelmir
    • #2
    • 22nd Sep 16, 8:17 PM
    • #2
    • 22nd Sep 16, 8:17 PM
    Mortgage companies don't employ surveyors. The work is contracted out to independent qualified RICS. The surveyor doesn't know the details of the financial side of the transaction. So there's no influence on the outcome.

    Your credit history is a factual record of events. You cannot pick and choose what is shown. Declining a mortgage offer has no negative bearing as such.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • ACG
    • By ACG 22nd Sep 16, 8:31 PM
    • 13,158 Posts
    • 6,443 Thanks
    ACG
    • #3
    • 22nd Sep 16, 8:31 PM
    • #3
    • 22nd Sep 16, 8:31 PM
    You can not get the credit search removed because you did not like the outcome of a valuation.

    The valuations are being carried out by surveyors, usually Connells, Eserv or Countrywide. None of those companies are Mortgage lenders and so have no financial benefit from lowering the valuation. Is it also in a banks beneift to devalue? It either increase their average LTV on the book, which means they have a higher risk portfolio or you move to a new lender with a better deal. There are more negative options/outcomes than there are positives.

    You could appeal the decision but I have never had much luck with those.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Smithy45
    • By Smithy45 22nd Sep 16, 9:08 PM
    • 4 Posts
    • 2 Thanks
    Smithy45
    • #4
    • 22nd Sep 16, 9:08 PM
    • #4
    • 22nd Sep 16, 9:08 PM
    Are the 3 companies you mentioned widely used by many lenders?
    • Thrugelmir
    • By Thrugelmir 22nd Sep 16, 9:13 PM
    • 49,929 Posts
    • 41,598 Thanks
    Thrugelmir
    • #5
    • 22nd Sep 16, 9:13 PM
    • #5
    • 22nd Sep 16, 9:13 PM
    Are the 3 companies you mentioned widely used by many lenders?
    Originally posted by Smithy45
    Yes. As they employ hundreds of qualified RICS between them and offer coverage of the majority of the UK.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • HiToAll
    • By HiToAll 22nd Sep 16, 9:40 PM
    • 620 Posts
    • 879 Thanks
    HiToAll
    • #6
    • 22nd Sep 16, 9:40 PM
    • #6
    • 22nd Sep 16, 9:40 PM
    I would say it is a scam, as most threads on this site that mention the word 'scam' very much are???
    • kingstreet
    • By kingstreet 22nd Sep 16, 9:55 PM
    • 29,616 Posts
    • 15,708 Thanks
    kingstreet
    • #7
    • 22nd Sep 16, 9:55 PM
    • #7
    • 22nd Sep 16, 9:55 PM
    I'd say less than 1% of the threads on here where the word scam is mentioned actually involve someone attempting to obtain money by deception or fraud.

    In this instance, surveyors usually have more than enough evidence to slap down over-estimates of value for remortgage business without anyone working with the lender having to collude in underhand practice.

    Did you base your estimated value on the actual recent (last four months) sold prices of similar property in the vicinity (less than 0.5 miles) or from a marketing appraisal by an estate agent who thought you might go on the market with them, or what zoopla said it was worth?

    If the former, you might have an issue with the surveyor. If the latter, it's not the lender/surveyor who is conning you...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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