HSBC explains criteria for desktop property valuations to get mortgages agreed
Following the Government’s recent announcements many surveyors have canceled internal property inspections with immediate effect.
In order to process more mortgages, HSBC has published the criteria for its system-generated property valuations known in the industry as desktop valuations or automated valuation models (AVMs). These systems generate a property valuation without a valuer visiting the property.
If a property is outside London and the South East, HSBC says the mortgage size must be £500,000 or less for a house or bungalow and £250,000 or less for a flat or maisonette. If the property is inside London or the South East the loan can be up to £1m for a house and £500,000 for a flat or maisonette.
HSBC has confirmed it will only accept AVM valuations for remortgages up to 80% loan-to-value and for home purchases the loan-to-value must be 85% or less.
In order to qualify properties must have an estimated value of between £100,000 and £2m. While new builds and homes estimated to be worth more than £1 million will not qualify. Where the AVM fails the case will be escalated for a physical valuation.
Aaron Strutt, product director at Trinity Financial, says: “If your application is submitted and your property is selected for a desktop valuation there is a good chance your mortgage will be agreed quickly.
“Many of the lenders have been telling us that they are open for business and they are not withdrawing their mortgage rates.”
Call Trinity Financial on 020 7016 0790 to secure a mortgage