Get Mortgage Valuations Direct – Cut out the Middleman says Lawrenson of LettingFocus.com

As a former strategist and project manager who worked at Direct Line and Lloyds TSB I know all the clever ways that banks have for relieving customers of money even without them actually realising they have been relieved of it.
One very smart way that mortgage firms have of making money on mortgages is by taking a juicy cut on valuations.
Here is my story. A year ago I talked to a badly briefed person at a call centre of the UK biggest buy to let mortgage companies. He said “Yes, I could arrange my own valuation direct with a RICS surveyor.” Actually that turned out to not be company policy but I took a record of the time and date of call –and so I had the lender over a barrel – so they let me go ahead and do it. The cost was £175 through E Surv surveyors.
Fast forward a year and this time I’m with another lender – this time a big high street bank – and taking out a mortgage for an identical property – but unfortunately for me their call centre is better briefed and the lender insists I do it through them. The cost is £270 – or £95 more than the year before.
Also, unlike last time I don’t actually get to see the copy of the report – if I had been offered that option (which I wasn’t as it happened) then that would have been another £25 apparently.
So there we are folks.
That is another nice earner for the mortgage lenders – making money on valuations.
Of course the lenders will say “Oh the cost of administering it is so much”
Mmmm, in these days of electronic transfer of data, I don’t think so somehow.
Sure there are costs involved but none that justify sticking 30% on the fee they are charged by the surveyors cannot do much about all this. Make a sound and they will find themselves thrown off the lender’s panel of approved surveyors. And it won’t matter which ahem “club” they are in.
My message to you is if you are getting a mortgage always try to see if you can arrange a survey direct. Try it on with the call centre. With a bit of luck you’ll get someone who is badly briefed and they will say yes. Take a note of the time of the call in case they try to dispute they ever agreed to it.
And my message to the press is it’s about time you did a story on this.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
I’m David Lawrenson a buy to let experts from lettingfocus.com.
I’m the author of “Successful Property Letting - How to Make Money in Buy to Let” which for the last 2 years has been the UK’s top selling property title: buy the UK's top selling property investment book
It is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on buying property below market value. I’m an expert property speaker and a well known property blogger and I contribute to newspapers and a host of property websites, write a number of columns in the press and I can provide help for landlords
Check out where I was recently featured in the Daily Telegraph: http://propertyclub.telegraph.co.uk/Page/View/266
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services and am a regular speaker at property shows.
You can read more of my blog & find details of my networking, advice, property investors networking programme at my website.What’s unique about lettingfocus.com is that we offer property investment mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, a developer, an agent or bridging loan financier and do not receive commissions from any of these sources.If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated once a week. Permission must be sought before using the material in the blog.

Mortgage Valuations, Surveys and Full Structural Surveys - What's The Difference?

First off, the Mortgage Valuation Report is just a check carried out on the valuation of the property.
It’s done for the mortgage lender (not you) in order to see whether the property is worth the amount that you want to borrow by way of a mortgage loan.
Normally, the report is sent straight through to the lender and the first you will see of it may be when you receive the mortgage offer.
Of course, if the valuation reveals that property is not worth enough for the lender to make the loan, then no mortgage offer will be forthcoming and you will have to go back and re-negotiate the price with the vendor or take out a lower loan and put in more equity yourself.
The Valuation Report may take as little as 30 minutes to do for a smaller property and information is normally quite minimal. Some agents have even said to me that they thought some surveyors did not even go into the property – i.e. that they just did a “drive by” - but these claims are rare and hard to prove.

Comparables
However, a Whistleblower TV documentary in 2006 did show one agent making up “comparables” to show surveyors – in other words making up imaginary properties in order to try to pressure a surveyor to agree to a high price for their vendor client.
Costs for a Valuation Report will depend on the value of the property. About £250 to £300 will be typical for a £200,000 property right up to about £800 for a £1million property.
Fees do vary across lenders so it’s worth asking when you call for a mortgage quote.

Middle Ground
The Home Buyer Survey and Valuation is a sort of middle ground between a basic Valuation Report and a full structural survey and will cost from around £300 upwards, and will take about two and a half hours for a three or four bedroom house.
As well as giving you valuation information, this more detailed option will give you information on condition of the property and although not as detailed as a full structural survey it will look at any matters that need attention such as whether you need further tests for things like damp or for woodworm infestation.

Full Structural Survey
Then there is the more detailed option -the Full Structural Survey - which will cost from £650 upwards depending on the size of the property.
Surveyors have to tell you what they have found and the full structural survey report is detailed and will tell you exactly what is wrong and what you should do to put them right.
It will also set out approximate costs for any essential repairs and the report may divide the repairs into “urgent”, “significant” and “observational” matters.
Most people would recommend going for a HSV if you are buying a larger home and you want more reassurance.
The Full Structural Survey would be better for older properties and listed buildings and for buildings that may have been altered significantly.

Arrange Your Own Private One
Usually, for valuation reports (and occasionally for the middling home buyer survey) the lender will just appoint a local surveyor from its panel using a quite automated process.
Try to get the mortgage lender to accept a survey or valuation you have arranged direct with a surveyor. One good trick is to say you have had one done already. Doing this will save you the ludicrous approx 40% that the lender will load on top for their “admin”
Before you appoint a surveyor, check that they are a member of the Royal Institution of Chartered Surveyors (RICS) -see contact details below.
For a Full Structural Survey you should convey before hand if there are any areas you particularly want him to look at.
However, you will not usually be able to make any special requests for the basic Valuation Report.
To find out more about surveys or any other aspect of buy to let and property investment ask me.

ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON

LettingFocus.com are the buy to let experts and I’m David Lawrenson, the author of “Successful Property Letting” – which has been the UK’s top selling property and buy to let book for the last 3 years.
We help landlords and property investors make money in property by coaching them in ways that work and which are of minimal risk.
I have been a landlord and property investor myself for over 25 years.

At LettingFocus we offer independent unbiased advice for landlords and property investors on a one to one mentoring and coaching basis as well as through occasional group seminars.

You should know that property clubs and property advice in the UK is still mainly unregulated and advice is often poor.
With no link to property firms, developers or bridging loan providers we at LettingFocus can give unbiased independent advice on where and what type of property to buy for investment, when to buy and how to buy property at a low price.
We also show you how to manage tenants properly and in ways that take up as little of your time as possible.

CHECK OUT THESE PAGES AT OUR SITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
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Next Property Investing Seminar and Networking Event
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For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
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Copyright: David Lawrenson 2007.

Mortgage Valuation Rip Off - Part 2 by LettingFocus

If you read one of my previous posts you'll know that I rather cheekily went direct to a surveyor who is on my lender's panel and asked them how much they would charge for a valuation report for the property I'm buying.
Their fee was £175.
The lender was going to charge me £315 for the same thing.
So, now you can see just one of the ways that the banks and building societies get so rich.
Also, the lender wants to charge me £40 for er, "retyping"
Have they not entered the electronic age - seems not
In the days of people challenging unfair charges, whether that "re typing" fee is fair or not is another story.
But, I'm still saving a cool £100 by going direct.
Unfortunately, by doing so, this has added at least two weeks to the time it's taken the lender to process my application form -and I'm still waiting.
So, if you want to save money on a survey then go direct to the surveyor.
If the lender says "No"- then challenge them on why not and say they are limiting competition and that they are imposing unfair charges.
And if you go direct, just don't expect the lenders to process your application at superfast speed.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

Hello, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling commercially published property book for the last 3 years.
Our main business is at a corporate level for organisations - both public and private companies.
We provide consultancy for banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

OTHER WORK
We also write for property websites and are regularly quoted by the media. In addition, we have written articles for numerous publications including The Independent, The Telegraph and quality landlord websites.

MENTORING
For private landlords, we also find some occasional spare time to help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE, LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For general info on our CONSULTING click here: Consultancy and Seminars
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?
IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME. PLEASE GET IN TOUCH!

See our Twitter page: http://twitter.com/LettingFocus

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.

Copyright: David Lawrenson 2007.

The Next Mortgage Lender Rip Off - Have They Done You on Valuation Fees Yet?

Recently, mortgage lenders have been in the news for the FSA ruling that says that they cannot say at the start of the mortgage that the “sealing fee” – what you pay them when you close the mortgage - will be £50 and then charge you £300 three years later when you actually close it.
I’ve just recently banked two cheques from lenders who previously tried to overcharge me in this way. A simple letter to them did the trick.
Now, I’m on the warpath again.
The lender with whom I’m taking out a buy to let mortgage wants £315 from me for a mortgage valuation.
However, by going direct to one of the surveyors on the lender's own panel I will only pay £175 – a saving of £140.
Naturally, the lending bank won’t like me doing this and they are trying to charge me a £40 “re-typing fee” which is pretty daft as the surveyor is on their panel anyway.
Also, in the days of data transmission, this fee has to be totally unjustified.

So, how do you do get round their rules and do this?
One way to try this is apply to a lender for a mortgage loan and tell them that because you were thinking about buying the property for cash, you already had a valuation done.
Now you find you need a mortgage after all.
There is a good chance they will let you use this and accept it as part of their valuation process.
It is worth a try.
Just get their agreement to this in writing.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.
Hello, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling commercially published property book for the last 3 years.
Our main business is at a corporate level for organisations - both public and private companies.
We provide consultancy for banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

OTHER WORK

We also write for property websites and are regularly quoted by the media. In addition, we have written articles for numerous publications including The Independent, The Telegraph and quality landlord websites.
For private landlords, we also find some occasional spare time to help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For general info on our CONSULTING click here: Consultancy and Seminars
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?

See our TWITTER PAGE: http://twitter.com/LettingFocus

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.
WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
To add a comment or view other people's comments on this post, simply click on “link to this post.”

Copyright: David Lawrenson 2007. Back to Main Site: www.lettingfocus.com