HSBC mortgage offer subject to valuation

[NannyPear]

We are porting our existing mortgage and taking out a second mortgage for the extra costs of the house we are moving to.

I had a mortgage appointment with HSBC yesterday where the application was processed, and this morning received a text saying our mortgage is approved subject to a satisfactory valuation, and the survey company will be in touch soon.

Anyone know what this entails? Will it be an actual physical valuation of the house? We are in Scotland so an independent valuation has already been done, why do HSBC want another one?

[Basillify]

Can't speak for HSBC but Nationwide didn't do a physical valuation for ours.

Our broker mentioned the bank "ordering" the valuation. I wasnt quite sure what he meant, should have asked. That said, we got the text saying the valuation was ordered then an hour later a text to say it had been received then one minute after that another message saying the valuation was approved and offer issued. I'm not sure what checks they do but it obviously wasn't a physical valuation.

It might be that, like Nationwide, HSBC processes are just geared up to the English system and doesn't distinguish with Scotland - it's maybe just that the application has finished one stage and moved to the next triggering a text in the automated system. They've got the home report so hopefully just a straightforward exercise to sign that off🤞

[WhoWouldHaveThoughtThat]

They want their own appointed valuer to give a value to ensure their loan will be covered in the event of you defaulting.

An independent valuer may not be totally independent...

[c3pu]

I had the HSBC surveyor come out a few years back. They did a quick look around to make sure it was worth what I said it was and it was all fine.

I was a bit concerned as it's a renovation project and in poor cosmetic condition, but they weren't fussed and just valued it accordingly, which was actually slightly more than I'd put it at.

[Finfintytint]

As WhoWouldHaveThoughtThat says.
Our buyers had a mortgage survey and a full structural survey done but their lenders didn’t approve either company so they had to pay for two more surveys by companies approved by lender.

[NannyPear]

Thanks all. I've just never heard of it being done in Scotland given that every house that is sold needs a Home Report which is typically more in depth than these sort of surveys. The HR was done by one of the biggest and well known survey companies in Scotland

I'm hoping what you say Basillify is indeed the case.

[MaggieFS]

Could it be a standard text? We remortgaged to Nationwide in May (but England not Scotland) and received such a text. Then a day later received one saying 'good news, your mortgage offer has been approved'. We were quite a low LTV and it was during lockdown so I assume the 'valuation' process involved someone checking the details and deciding all was ok without a valuer actually having to come to the house.

[NannyPear]

In case anyone is interested or finds this in the future... Our mortgage was approved! They must have either looked at the original home report or done a desktop survey. Either way, that was a mortgage approval within 48 hours of application so happy with that!!

[AsMuchUseAsAMarzipanDildo]

HSBC seem pretty speedy at the moment. We’re also porting. They did do an in-person valuation, but even with that, mortgage application to offer was only 10 days. I was expecting a lot longer to be honest.

[GrumpyHoonMain]

Hsbc do a desktop valuation where possible -just be warned they are downgrading valuations by 10-20% to account for Covid.

[FManc]

@GrumpyHoonMain

Hsbc do a desktop valuation where possible -just be warned they are downgrading valuations by 10-20% to account for Covid.

Yes there might be a few properties that are being down-valued but very much doubt they’re applying a blanket 10-20% down valuation! I’d be surprised if they’re approving anything then!!

[NannyPear]

Grumpy where did you hear that? They didn't downgrade the house I'm buying! As PP says, how would anyone get a mortgage?!