Are banks more stringent than building societies?

BornTooHula

Hi there

I've applied for a mortgage with HSBC, who carried out a valuation and asked for quite a few things to be done in order to approve the mortgage. Some remedial works on the house, damp and timber survey, structural survey, etc.

I wondered whether other lenders may be less strict and help the process along more smoothly?

I'd love to hear others' experiences with HSBC.

K_S

@borntoohula It depends on why the lender has asked for additional targeted inspections, especially the structural survey.

What is it that they are concerned about specifically?

Valuation is not an exact science, and valuers can often miss issues during the process or if doing a desktop valuation so another lender (that uses a different surveyor panel to the one used by HSBC) may or may not return a different result. However, if it's something obvious like a sagging roof, or a non-standard construction type, etc. then you can expect a similar outcome if someone else comes out to look at the property. 

dunstonh

Are banks more stringent than building societies?

No.  It is over 30 years since there was a difference.   However, individual lenders (whether bank or building society) will have their own lending criteria.

HSBC tend to be tighter on criteria than many others.   If you are pushing limits or have issues then its often worth avoiding HSBC.   However, in terms of the valuation highlighting issues, that happens across the board and is quite normal.

Some remedial works on the house, damp and timber survey, structural survey, etc.

What does your own survey say? - considering these issues have been highlighted, it seems logical to have a proper survey (not a homebuyers report or simple valuation but proper survey).    I got one as standard for my property due to its age.  However, the survey and lender valuation picked up a point and it needed a structural survey on top and the vendor paid for that and the repairs which it recommended.

london21

Can vary 

A property valued by HSBC came back fine.
Came back fine with Barclays
Virgin money requested structural survey.