The valuation is for the lender, not you!

Some weeks there is just too much news to take in and it can be difficult to assimilate and report on. Then there are quiet weeks where nothing much seems to happen.  This week has been the latter and the mortgage market has been quieter than normal.  So, what to discuss?

Well, it all went Wonga at Newcastle FC this week as the lender has agreed terms to take over the clubs shirt sponsorship.  Current sponsor, Virgin, indicated that they were sad to be losing the sponsorship deal previously negotiated by Northern Rock, the bank they recently acquired and whose name they are now phasing out totally.  

The Bank of England Base rate was retained at 0.50% for another month, but watch this space. There are a number of highly rated financial gurus predicting a cut in November.  Will it happen?  No one really knows but the momentum is gathering and we will see before too long.  If there is a reduction then it may not be for long and any resulting decreases in lenders tracker, discounted or fixed rates should be snapped up quickly.  Don’t miss any opportunities to save yourself money!  

On a separate subject, valuations on properties to be mortgaged come in various guises. Every mortgage lender will require a valuation on the property although, in some cases, they will not actually visit. This is because they can often access detailed information electronically.  Of course, this can prompt a borrower, who has paid a fee, to question the reasonableness of this method. In fairness to the lenders, it is a tried and tested system and rarely proves incorrect.  They have expenses regardless of the visit and this system does have the effect of keeping prices down.  Remember that this, fairly basic valuation is for the lender, at your cost, and should not be relied upon as a guarantee that the property is sound and fit for purpose.  Seek a more detailed survey if you have any doubts.