Remortgage valuation too low! ??Scam??

Smithy45

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
:{

Thrugelmir

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.

ACG

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.

Smithy45

Are the 3 companies you mentioned widely used by many lenders?

Thrugelmir

Smithy45 wrote: »

Are the 3 companies you mentioned widely used by many lenders?

Yes. As they employ hundreds of qualified RICS between them and offer coverage of the majority of the UK.

HiToAll

I would say it is a scam, as most threads on this site that mention the word 'scam' very much are???

kingstreet

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...