Problems with interest rates and repayments? Ask for home loan help.
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This is a fee charged by lenders to cover the cost of valuing a property in order to determine that the security is sufficient to cover the debt position.
Some lenders include this cost in their Application Fee and some will absorb the cost themselves in order to get a competitive advantage. Some lenders have internal valuation staff, whilst others use external valuation companies.
Values performed for lending purposes are often conservative because the lender is looking at the property from the perspective of having to sell the property at a “fire sale” price to cover an escalating debt. Usually the borrower is not advised of the value because it can lead to legal problems and disputes.
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