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The Profound Role of Surveying | Protecting Borrowers’ Interests

The Profound Role of Surveying

The Profound Role of Surveying


In the article titled “The Profound Role of Surveying,” we aim to highlight the immense importance of brokers within the mortgage market, and the surveying industry serves as another example highlighting this fact. When it comes to the property market, it is common for individuals to obtain a mortgage from a lender to purchase a home, and this practice has persisted for a considerable period of time.

To emphasise a key point, merely being polite and well-mannered alone does not qualify borrowers to secure mortgage approval. Brokers understand the crucial aspects of what it takes to get approved.

Every mortgage lender has their own set of criteria for lending money, and whether a borrower’s mortgage application is approved largely depends on factors such as their financial situation, age, and employment status. Nevertheless, even if a borrower is granted a mortgage, they must still consider the type of property they can realistically afford to buy.

Once a borrower has identified a property they wish to purchase, their lender will engage a surveyor to evaluate its suitability as collateral for the mortgage. This stage can present its own set of challenges.

Brokers are well acquainted with the property security standards set by lenders and understand that certain property types typically pose greater challenges in obtaining a mortgage.


Property types to avoid | Non-standard construction


In delving deeper into the acceptance criteria for property security, non-standard construction is an area that lenders often find challenging, a lender’s kryptonite if you like. Non-standard construction refers to residential properties that deviate from the conventional standards of brick, mortar, stone, and roofs made of slate or tiles.

These atypical homes present distinct obstacles and risks regarding repair, renovation, and reconstruction expenses. Additionally, they may have a shorter lifespan, be susceptible to significant structural problems, or have an elevated fire risk. Some examples of non-standard construction include:


  • Concrete: Properties constructed with concrete, particularly Precast Reinforced Concrete (PRC), gained popularity in the 1960s and 1970s, exemplified by iconic structures like the Barbican complex in the City of London, known for its Brutalist architecture. “The Profound Role of Surveying”


  • Steel frame: Steel frame construction, known for its affordability and lightweight properties, was widely used by local authorities for post-war housing. However, it was later discovered to have structural vulnerabilities, raising concerns among industry professionals. “The Profound Role of Surveying”


  • Timber frame: Buildings with timber frames, whether modern or historic, are generally viewed unfavourably by lenders due to the higher risk of fire associated with this construction type. The same caution applies to properties with thatched roofs, also deemed more susceptible to fire hazards.  “The Profound Role of Surveying”


Potential buyers and lenders need to consider the implications of non-standard construction carefully. The unique characteristics of these properties require specialised expertise and due diligence to ensure their safety, longevity, and insurability.


Why is Surveying important?


In the dynamic world of mortgage lending, a key component often needs to be addressed: surveying. The Profound Role of Surveying in the mortgage industry cannot be overstated. This process extends beyond a mere checklist item, serving as a crucial safeguard to protect lenders and borrowers from hidden defects and cost implications. Intermediaries, such as mortgage brokers, advocate for surveying and nurturing a culture of informed decision-making and consumer protection.

Before a lender can put the seal of approval on an application to assess the property their client wants to buy, the lender will send a representative to visit the site and complete a mortgage valuation. Based on their report, the lender will determine if the property meets their lending criteria. Additionally, the client may need to obtain a full Building Survey (Level 3) or structural engineer’s report to approve their mortgage offer.

In essence, surveying empowers lenders to make well-informed judgments regarding the appropriateness of a property. The Profound Role of Surveying also assures prospective buyers that they can make educated decisions without concealed defects or problems. Another advantage is the safeguard it offers against potential claims for damages that could arise later due to a defect discovered after the purchase is finalized. The Profound Role of Surveying is the cornerstone of responsible lending and home buying, ensuring that all parties involved can confidently move forward in their decisions.


Understanding the role of brokers 


In the realm of mortgage lending, the onus of ensuring borrowers’ financial well-being falls not only on lenders but also on mortgage brokers. These trusted partners guide individuals through the intricate process of securing a loan, carrying the responsibility to promote transparency and equip their clients with the necessary information for informed decision-making. One such tool is mortgage surveying, which plays a profound role in this process.

While mortgage surveying is often perceived as a mandatory requirement for loan approval, its true value lies in its ability to uncover potential issues that could significantly impact borrowers’ interests. By commissioning a survey, borrowers gain comprehensive insights into a property’s structural integrity, identifying defects and hazards that might go unnoticed during a mere visual inspection.

This knowledge empowers borrowers with negotiation leverage over the vendor, enabling them to address concerns before finalising the purchase. The profound role of surveying becomes evident as it acts as a safeguard, protecting borrowers from potential pitfalls in their property investments.


Breaking down the importance of surveying


  • Safeguarding borrowers’ Interests: Hidden defects represent a considerable risk for homebuyers, often surfacing after the purchase. These defects can result in unforeseen expenses, causing financial strain and emotional distress. Through a thorough survey, borrowers can identify such issues beforehand, allowing them to negotiate repairs or reconsider their decision. Considering the potential financial burden caused by undiscovered defects, the cost of a survey pales in comparison, making it a wise investment. “The Profound Role of Surveying”


  • Mitigating financial risks: Lenders are also vested in promoting mortgage surveying. By ensuring borrowers conduct surveys, lenders minimise their risk exposure. Early identification of defects or significant cost implications prevents borrowers from defaulting on their loans due to unforeseen financial strain. This shared commitment underscores the duty of brokers to recommend surveying their clients. “The Profound Role of Surveying”


The importance of consumer duty 


Consumer duty significantly impacts the role of a broker when it comes to surveying for mortgage purposes. Brokers are responsible for acting in the consumer’s best interest and ensuring that they receive suitable mortgage advice. The Profound Role of Surveying Concerning surveying, brokers play a crucial role in helping consumers understand the importance of obtaining a survey to assess the condition and value of a property.

Under consumer duty, brokers must prioritise the consumer’s needs and ensure they are fully informed about a mortgage’s potential risks and benefits. When it comes to surveying, brokers can guide consumers in selecting the appropriate type of survey that aligns with their requirements and budget.

They may explain the different types of surveys available, such as homebuyer’s reports or full structural surveys, and highlight the potential implications of not conducting a survey.

Brokers also play a vital role in connecting consumers with reputable surveyors who can provide thorough and unbiased property assessments. They may have established relationships with surveying professionals and can recommend reliable options to ensure consumers receive accurate information about the property’s condition.

By fulfilling their duty to the consumer, brokers enhance transparency and help consumers make informed decisions. They enable buyers to identify any hidden defects or issues affecting the property’s value or requiring costly repairs.

Ultimately, the role of a broker in surveying for mortgage purposes is to advocate for the consumer’s best interests, promote due diligence, and provide valuable guidance throughout the process. The Profound Role of Surveying continues to underscore the significance of brokers in ensuring consumers receive the utmost benefit from property surveys.


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