Remortgage Process

dharper81

Hi MSE Mortgage Forum!

I recently submitted a remortgage application to Clydesdale bank through a broker.

I've been told that the application is currently being looked at by the underwriters (it's been about 10 days since submission) and they have asked for a valuation survey to be carried out which I have now booked in. There wasn't a cost for this as the valuation and legals were free of charge.

Is it normal for the bank to request the valuation survey prior to making a decision about whether the remortgage will likely be approved or not? Does this mean that it is likely to be approved subject to the valuation report generating the necessary amount?

I've been told that the underwriters are still assessing the application.

I've looked on the forum but can only find examples of mortgage applications regarding new purchases, not remortgaging an existing property.

Thanks

Elfbert

Are you truly remortgaging - as in, moving to Clydesdale from another bank? If so, it's completely normal for them to want a valuation survey before approving the mortgage - what if you'd lied to them and no property existed? Or the property was in a terrible state? It's exactly the same as having a new mortgage on a property you're buying, it's just that instead of giving the mortgage money to your seller, you're paying off your old mortgage with it and beginning a new mortgage with Clydesdale.

It would be unusual for them to want to incur the cost of sending someone out to value it if they weren't fairly sure they were going to offer you the mortgage, but nothing is certain until you have the money!

Thrugelmir

dharper81 wrote: »

Is it normal for the bank to request the valuation survey prior to making a decision about whether the remortgage will likely be approved or not?

Yes. As forms a critical element of the decision making process. No lender is going to commit to advancing thousands of pounds on your word alone.

dharper81

We are transferring the balance of our current mortgage from a different bank.

I understand that prior to the funds being transferred and everything being finalised they would obviously need to complete a full valuation of the house.

I just wanted to find out if they are likely to have already assessed the application (income, credit check, affordability etc) prior to requesting a valuation survey, or if they may still reject us based on affordability even if the valuation of the property is above the estimate.