HSBC Mortgage

lulabelle

This may be on the wrong thread but I need an answer before my appointment at 1pm.

My fixed rate is coming to an end and so I am discussing my options. My house has risen in value by about 20k (maybe more) in last 3 years on basis of what I have asked the estate agent and what properties in that road are selling for currently.

To get best rates HSBC won't take my word for current value (obviously) but have said I need to pay £175 to get it re-valued.

Surely this is an unfair bank charge - surely it doesn't cost them this much to get it re-valued? It only takes speaking to a local estate agent.

Anyone have any views??

wisbech_lad

Why should a local estate agent do the work for free...? And likely the work will be done by a surveyor, not an EA

lulabelle

but is £175 fair?

they are screwing me out of everything I have already just to change the rate

Coupon-mad

I used to work for HSBC and A&L, dealt with mortages etc. I guess you are after a further secured loan (i.e. increasing your mortgage)? I am afraid that most lenders would need a new valuation to lend further on a property where the previous valuation does not cover the extra loan.

As already said, the revaluation is usually done by a surveyor (but the annoying thing is it takes about 10 mins, it's just a glance really, not a survey.

Two thoughts are, ask HSBC if there is any alternative, i.e. can their Manager or Lending Officer do a 'drive-by' your house instead? Sounds silly but HSBC do do this sometimes. A couple of years ago I remortgaged from A&L to HSBC, and HSBC just did a drive-by (saving me a valuation fee) - and it was not because I was ex-staff. I think it helped that we obviously had some equity as we bought the house 10 years before and had not increased the mortgage.

Secondly, find out from other lenders about the costs of remortgaging (i.e. moving your mortgage to another lender). Or even get a quote from HSBC's sister company, First Direct, and play one off against the other. I am now with First Direct because I wanted an offset mortgage (which HSBC don't do), but again paid no valuation fee for the switch because First Direct used HSBC's drive-by figure!

Coupon-mad

lulabelle wrote:

but is £175 fair?

they are screwing me out of everything I have already just to change the rate

Oh, thought you wanted to borrow more? If they are just changing the rate I don't think they will need a valuation - but there will be an Admin or arrangement fee for the new rate.

Again, go off and compare their rate with other lenders, take into account the costs of each, and if you feel you need further advice try to get a recommendation from a friend of a good 'no-fees/unbiased' broker.