Mortgages

[Linnet]

Went along to a bank last week to ask how much they would lend us for a mortgage, just out of interest at this point in time. The person we saw mentioned a valuation fee and it would cost X amount if the bank did it, can't remember how much he said.
But he did also say that if we wanted to get a valuation done ourselves and pay for it ourselves we could and we wouldn't have to go through the bank.

Now here's a question which may be incredibly stupid but...There are estate agents in my town who advertise free evalutions. If we were to go ahead and buy our house, the one we are living in at the moment, could we get someone along to do a free evalution for the mortgage or would that not apply if we were applying for a mortgage and would we then have to pay someone to do a valution?

Hi I think they are 2 different things. The ea will look at what the neighbouring house for (similar size/condition obv.) add about 10% a day and suggest you go for that . The bank/bs want a surveyor (I think) to come round and put a "value" on your house on which they are prepared to lend. This can often be lower than the ea hence deals fall through. The surveyor is working for your bank/bs paid by you. the ea is trying to get your business. hope that helps

Agree with Skiwear, estate agent are valuing to sell your house. The bank/bs is valuing to make sure the house is worth enough to warrant the mortgage. Bank will definately want there own valuation and you do have to pay. The cost depends who you get the mortgage with.

For a speculative inquiry as to how mcuh they might lend a EA valuation may suffice until you actually want to take out the loan at which point they would insist on a proper market valuation by a surveyor. . They may let you organise this yourselves through choosing from a panel of ones they have approved - so you could get more than a basic valuation report without opting for a full structural , just tailored to cover pearticualr areas in adddtion to the valuation - or you may have to pay for the bank basic one and arrange a second more detailed survey for your own purposes, or choose the next one up detail wise, a Homebuyers report.

You can get one yourself through a packaging company. (Hi I work for a packaging company as a mortgage underwriter) they are often about £300 (whereas structural/homebuyers are £450+) and you can have someone tell you which is the best company for credit rating, rates, etc etc. TBH, I wouldn't go through your bank. Id go through a mortgage intermediary/broker.

Hope that helps

Linnet we are in the process of getting a valuation done for the house we are buying - I think that the Estate Agent one applies to a vauation in terms of the house you are selling, basically how much they market it for and the other applies to the one that a surveyor does which goes through the structual bits of the house to make sure it is a safe bet and worth the amount of money you want to borrow for her bank to lend you the money on.

Well typed all that and realised it is all on here anyway!!

Thanks everyone,

I'm not adverse to paying I just wondered when I saw ads saying that if you want your house valued we'll do for free.

I do realise now thinking it through and seeing what many of you have written that an estate agent would be looking at how much it would sell for where as when applying for a mortgage they would be looking to see if it would be worth the loan.

thanks again