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One of the few compensations of age is that I have a small Mortgage.
I'm currently remortgaging for (I hope) the final time.
The application is well underway (Solicitor working on it etc.) . They've told me there's no need for a valuation They haven't asked for proof of earnings and I get the feeling they're not going to.
So it seems they are asking for literally no evidence at all from me. Is that normal for low LTVs?
I can see why - just surprises me.
On the valuation front, I would imagine they use an equivalent of Zoopla for broad market valuation and it will be comparatively low risk for them...
This;
On the valuation front, I would imagine they use an equivalent of Zoopla for broad market valuation and it will be comparatively low risk for them…
Quick search of what other similar properties have sold for and as its low LTV its low risk, they wouldnt bother wasting their time and resources on sending someone out.
We have the same thing on our house LTV is around 30% last two remortgages didn't bother with a valuation.
The only outcome in which the bank loses is if they cannot sell your house to cover the debt. In low LTV cases this is highly unlikely unless you have some how purposefully devalued your house to the point it is worthless.
So it seems they are asking for literally no evidence at all from me. Is that normal for low LTVs?
This is my understanding.
Mortgages aren't massively profitable for banks and margins are surprisingly sharp, they sell mortgages to comply with legislation to allow them to make more risky, more profitable trades elsewhere. A small LTV lend is almost zero risk, so if they can improve their margin by making the application process cheaper and faster for them, they will.
So, with a booming housing marketing ensuring it all looks like a no-lose gamble and letting their customers 'self-cert' their income to save costs, surely we can all look forward to getting rich with zero effort forever more yeah? Can't see how that could go wrong 😉
If the mortgage is small enough then even the land value would cover the debt so the building on it(and its condition) could also be irrelevant.
Look at the top end of the LTVs, 95% is quite expensive, well relatively. 90% a wee bit less, 85% a bit less.
There is a big drop at 75% which I'm lucky enough to be hitting when I redo mine.
If you default and they have to sell to recoup their debt they'll just auction it, chances of getting 95% are slim, so riskier so higher rate, 75% should be achievable so lower risk so lower rate.
30% should be a dead cert with a huge margin for error so not worth their time and effort checking really.
The application is well underway (Solicitor working on it etc.)
Out of curiosity, why do you need a solicitor to remortgage? I've only ever just applied to the bank/building society and provided what ever docs they've asked me for.
Out of curiosity, why do you need a solicitor to remortgage? I’ve only ever just applied to the bank/building society and provided what ever docs they’ve asked me for.
Explained here:
https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/conveyancer-solicitor-remortgaging/
unless you have some how purposefully devalued your house to the point it is worthless.
I have two young kids... I suspect they could damage the plot itself without breaking a sweat.
Thanks all. I'm still surprised. I've no doubt it's risk free for the bank, I'm just surprised at the level of common sense and flexibility involved. I'd have thought they'd have a policy/checklist they applied to all mortgages. I'm sure they'll still find a way to make it hard for me at some point.
Valuation will be automated and income could have been proved through inter bank statement sharing