Does a Building Society have to use their own Valuer?

Leeds_House_Mover

Having problems with my house purchase where the Valuer has undervalued the new house. It was a 20 minute stop and they've taken the value of a house around the corner as a guide even though this one is in a better location.

We've tried to negotiate with the sellers but that might not work.

Have suggested to the Building Society that I pay for a separate valuation from a local surveyor thinking he will know the area.

Building Society say that they have to use their own national firm of Surveyors/Valuers due to 'financial regulations'. I bet it's just their own rules that stop them doing this but does anyone knoe of any proper FCA/RICS rules that prevent them from doing so.

ReadingTim

I'm sure you're right, and it is simply their own internal rules. However, it's their money they're lending, so it's their commercial decision how much to lend, or not lend to at all - no-one has a "right" to get a mortgage, nor is the mortgage amount prescribed by statute or regulation.

G_M

Leeds_House_Mover wrote: »

Building Society say that they have to use their own national firm of Surveyors/Valuers due to 'financial regulations'. I bet it's just their own rules that stop them doing this but does anyone knoe of any proper FCA/RICS rules that prevent them from doing so.

I suspect they are referring to the tightening up over recent years of the lending criteria they use.

Lenders must lend responsibly (ie not lend more than a property is worth or more than a borrower can afford.

By appointing their own Valuers, who are legally responsible to them, and have no connection with the Borrower, they can be seen to be taking due diligence.

Agreeing to use a Borrower-selected surveyor, especially if that surveyor then 'up-valued' the property, wold expose them to potential criticism from the regulators if things went wrong.....