do i sign my offer letter BEFORE i've heard valuation?

manikm

HIya guys,

I've gone for the lifetime HSBC tracker - i've had my offer letter today - but bit worried about the valuation - i need a value of 180K on a place i paid 170K for 2 years ago.

Nationwide valued it at 175K 2 months ago - so it purely lies in the hands of HSBC's surveyors.

Anyway - i had the offer letter package today - do i sign this and send it off - BEFORE i've heard what they valued my place at - cos if they undervalue it, i wont be able to go ahead with it - HSBC in their fairness have promised to refend my booking fee (599) if this does happen.

What should i do, sign and send off regardless? or wait to hear what they value me at?

herbiesjp

I dont think you would have got the offer letter issued had the property not come in at the right value

The value of the property should be in section 3 of your offer letter - have a look

manikm

Nah mate, i wish! Section 3 mentions what I valued it at (i said 185K to be safe) there is no surveyors valuation mentioned but, have a read on anyway.....

It says:

We, HSBC Bank PLC are pleased to offer you a mortgage loan on the following basis blah blah blah....

This offer is valid until 25 October 2008. You are free to decline this offer but you would lose any valuation fee and/or Tracker rate booking fee you may have already paid (i have paid £599) to HSBC.

I find this strange, cos the letter is dated 25 Sept - which was BEFORE the surveyor came round yesterday (26th)

So i really dont get it!!

Can anyone shed anymore light on this?!??!?!?

herbiesjp

Is this letter broken to down into separate numbered sections from 1 to 14?

If it isn't, then it is not the formal mortgage offer letter

As stated above - section 3 would have the property value on it. If it is the same figure as what you gave them, it looks like the surveyor has agreed with the figure you gave them on the application

Alternatively you could give HSBC a call to double check

manikm

mate

the cover letter is 2 pages, its entitled:

OFFER DOCUMENT

We are pleased to enclose the offer document for your loan application. If you wish to accept this offer please return one entire document to us, having signed the final page, and keep the other for your records.

I have 2 copies of the offer - and its broken down into 13 \ 14 sections, section 14 isn't numbered its just where i sign!

Should i be getting the champagne out!>?>!>!?

Madjock

That's not a mortgage offer, it's an agreement in principle and the KFI. The offer wouldn't be issued without the valuation being done, and it wouldn't be valid for 1 month. I've seen offers valid for 2-3 months, but 1 month just wouldn't happen.

_Andy_

You can ring them today to check if you want - 0800 494 999.

manikm

Madjock wrote: »

That's not a mortgage offer, it's an agreement in principle and the KFI. The offer wouldn't be issued without the valuation being done, and it wouldn't be valid for 1 month. I've seen offers valid for 2-3 months, but 1 month just wouldn't happen.

why does it say offer document then?

Margin_Walker

HSBC's offer documents are sent out subject to a satisfactory valuation. What you have there is definately the offer document. The valuation figure on there will be your estimated value as you mentioned. Phone them on 08457662255 and they can confirm it.

It really doesn't matter whether you sign it now or later. If you dont sign it within the 30 days specified they will just send you another one thats valid for a further thirty days. As long as the mortgage itself completes within six months of you booking the interest rate(The day they took the booking fee). Hope the valuation goes well, if it doesn't the fee will usually be refunded if you are not in a position to reduce the lending. I'm assuming its a remortgage

manikm

hiya thanks!

im gonna have to ask tomorrow in branch and speak to the lady i've been dealing with.

im getting mixed comments on this thread whether or not its the offer or not.

just find it weird im getting an offer letter, BEFORE surveyor has even been round.

i bloody hope so!!!