Mortgage Valuations will not return in the flick of a switch

Mortgage Valuations will not return in the flick of a switch

Mortgage valuations are back in the market on top of government announcements regarding social distancing. Therefore, it is the best time to urge your mortgage provider to run a physical valuation by instructing a reliable surveyor. However, you might have to be aware of the fact that the physical mortgage valuations might take more time than usual to get processed.

Physical valuations

Physical valuations for mortgage purposes are on hold for quite some time now due to the pandemic. Therefore, it is critical to identify how to handle your mortgage during the pandemic. The major plus point in this scenario is that the UK government has announced that surveyors can conduct physical valuations now. The other governments will also follow the same in the coming weeks. So, as customers, the first thing you should do is to contact your mortgage broker/lender and urge them to instruct a physical valuation.

Desktop valuations

These developments simply does not mean that all the lenders and surveyors will quickly move towards physical valuations. Some of them might be still reluctant to optimize this because of staff shortages and difficulties in resource allocation. Specifically, if you are looking to get your first mortgage or to mortgage a BTL property, lenders might not prioritize your valuation over residential cases that are pilled up. The biggest worry in terms of desktop valuations is that lenders have down valued the estimated valuation with these desktop valuations.

Reasons why physical valuations will take time to return

  1. A lot of people are still worried about containing the virus. Therefore, residents will not be that comfortable with surveyors visiting their property.
  2. High risk and self-isolating customers will anyway not be allowed to make contact with external parties such as surveyors
  3. High amounts of physical valuations have been pilled up with the lenders and it will take time to action them all
  4. Some lenders have not done desktop valuations at all even for mortgages below 60% Loan To Value. They are all in queue.

To cut the long story short, it would be ideal to contact your mortgage broker or the lender asap and ensure your valuation is listed as a top priority and urgent case based on how long you have waited for this.

Desktop valuation came down: Request a physical valuation ASAP

In case your property has been down valued by a desktop valuation, still you can challenge it by requesting a physical valuation. This would help you to secure the expected loan amount subject to valuation results. Having a solid knowledge of both desktop and physical valuation processes and taking timely action should really help you become successful with your mortgage.

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