Countrywide Surveying Services (CSS) has reported that four out of five consumers still confuse a mortgage valuation with a survey.
The firm recently held a webinar and when asked the question “is the mortgage valuation still thought of as a survey?,” 80% of respondents believe this to be the case, with only 20% disagreeing with the statement.
The webinar had a session focusing on a panel discussion around The Role of the Mortgage Valuation. Over 250 people actively engaged in the session with the audience consisting of lenders, brokers, surveyors and other property professionals.
The panel included Thom Wilkinson, member of the Law Society’s Conveyancing and Land Law Committee and partner at Bishop and Sewell and Mark Hayward, chief policy adviser at Propertymark. They joined Ana Bajri, head of sustainability at Countrywide Surveying Services and John Baguley, director of risk, technical & compliance at Countrywide Surveying Services who hosted the session.
Further polls were taken during the webinar around the valuation process and consumers understanding of it.
CSS said the audience responses highlighted the need for greater consumer awareness around valuations, with 86% pointing out homebuyers’ failure to understand that a valuation could be completed by a computer. Whilst 14% suggested that consumers were aware this could in fact be the case.
CSS also asked the audience if they thought that – to avoid consumer confusion – the mortgage valuation should never be disclosed. This question split the audience with a small majority of 54% saying they thought it should never be disclosed with 46% declaring that it should always be disclosed. When posed with the question – should an information pack, including the legal documents and survey, be provided when a property is marketed? Three-quarters of attendees (75%) thought that it should be included with 25% of the opinion that it should not be included.
Matthew Cumber, managing director at Countrywide Surveying Services, said: “Despite mortgage valuations being a staple component within residential lending, they can often be misunderstood and much maligned. Educating consumers and streamlining the information required to buy and sell a home is why the Home Buying & Selling Group was set up and whilst this continues to do some great work, there is still some way to go. Meaning it’s up to us, as an industry, to continue raising consumer awareness around valuations and help homebuyers understand exactly what they need and what they are getting when they enter into the homebuying process.”
“As a business, we have to constantly evaluate how we best service the needs of lenders, intermediaries and buyers in the modern age. This is certainly an area we will continue to focus on in 2022 to ensure that all parties in the mortgage chain have access to the right information to enable them to make the most informed decisions possible.”