Research shows that over three quarters of mortgage advisers recommend private surveys
Latest research from TMA Mortgage Club, shows that over three quarters (76%) of advisers recommend taking out private surveys when purchasing or remortgaging a property.
In the press release they state: The majority of advisers say that they recommend borrowers take out a private survey before buying as they offer a thorough analysis of a property and also believe valuation reports conducted by lenders are not comprehensive enough.
Over three quarters (76%) of advisers recommend taking out private surveys when purchasing or remortgaging a property, according to a survey of TMA Mortgage Club’s premium advisers.
The majority of advisers say that they recommend borrowers take out a private survey before buying as they offer a thorough analysis of a property and also believe valuation reports conducted by lenders are not comprehensive enough. This disconnect can therefore mean borrowers and lenders value a property differently. Advisers also agree that a private survey provides borrowers with more protection and would save them money in the long term as it is the only way to identify any defects in the property.
This is backed up by ongoing research by the Royal Institution of Chartered Surveyors (RICS) who identified that on average, homeowners spend £5,570 on repairs once they have moved into a property. This was largely due to not investing in a full private survey.
With the practice of taking out a RICS survey report becoming more standard, brokers need to ensure that they are able to fully advise their clients on this part of the process. Whilst lenders will recommend a surveyor to complete a valuation, this isn’t comprehensive enough to offer prospective buyers security in the property they are thinking of buying.
Despite it being mandatory in Scotland for vendors to take out a survey (the Home Report) on the property they are selling, 43% of the brokers polled by TMA don’t believe that it should become a required part of the valuation process in the rest of the UK.
The research also shows that advisers are unsure on where to refer their clients. Currently, over a quarter (28%) of the advisers polled use a local surveyor and only 5% refer to a nationwide firm, whilst nearly a quarter of advisers (24%) refer clients to the lender’s firm of choice for a private survey.
David Copland, director of TMA Mortgage Club, says:
“It’s great to see so many brokers already advising their clients to take out a survey, but we would like to see it across the board. A home is one of the most expensive purchases a person makes and whilst our advisers are on hand to make sure that their clients get the best deal, we should be ensuring that they are not about to commit to a home that could cost them thousands of pounds.
“Going forward, we will ensure that TMA members are aware of all the surveys available and will help them to develop a strong relationship with a firm that they can refer their clients to, so they don’t have to solely rely on the lender’s provider.”
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