Brokers have reported a rise in down valuations in recent weeks, especially on remortgages, with one lender, Gen H, confirming the trend.
Peter Dockar, chief commercial officer at Gen H, says: “From a lender’s perspective, we have also seen a gradual uptick in down valuations.”
Speaking to news agency Newspage one broker, Laura Bairstow, says: “We have noticed a definite increase in down valuations, especially in instances where the borrower only has a 5% or 10% deposit.”
PRE-EMPTING A CRASH
Another broker, Katy Eatenton, adds: “I have found there are more down valuations on remortgages than purchases. Valuers are clearly still pre-empting a crash. That or they are helping one happen.”
Meanwhile, broker Richard Jennings says: “Just this morning I have received a valuation report through showing a 10% reduction in the estimated price.”
And broker Gareth Davies cut straight to the chase: “It’s down valuation central right now. We’re seeing a clear uptick in surveyors disagreeing on valuation figures. We’ve had three cases this week where a surveyor has stated a value less than what the property was bought for in 2022, despite no evidence to suggest that this is happening in the respective regions. Sadly, you have more chance of knitting fog than getting a surveyor to reconsider a decision.”
CONFUSING VALUATION MODELS
And Gary Bush, Financial Adviser at MortgageShop.com, says: “We have found both chartered surveyors and UK lenders working on very confusing valuation models at the moment.
“With Halifax and Nationwide both showing positive numbers for property across most of the country in their respective indices, this does not seem to follow through in surveys and on lenders’ automated valuation systems when working on mortgage applications for purchase and remortgage cases.
“There is usually a lag in data being updated on any positive news but we are well beyond the benchmark timescale now for updates to have been implemented. Caution is good in financial services, but paranoia is unnecessary.”
