So what you are saying is that the broker, completed the mortgage application form on behalf of your sister, leaving out relevant information but your sister signed it anyway
The broker said it was a cottage and the address but it did not give the number of bedrooms. The broker was the expert at mortgages and advised accordingly.
Did your sister conspire with the broker to get a loan on a supposedly 6 bedroomed house when it in fact had only two bedrooms?
My sister would have had no control on what it was valued at, or what the valuer would have written.
As said before "the borrower vaguely remembers the broker saying that he may get the valuer to put down "an extra few bedrooms" to help get the mortgage. The borrower thought the broker was joking and was extremely surprised to see the valuation report only recently." My sister thought someone from the bank would go out with the valuer to inspect the property, such was her innocence! I wonder does auditing of valuers ever happen? What is your experience on this, as you have arranged valuations?
Are you saying that the broker and valuer were in cahoots to get this loan for your sister and she turned a blind eye to what was going on?
My sister did not see the valuation or know what was on it until years later. Like buyers of Priory Hall and Longboat quay, she trusted other peoples - the "experts!"- assurances at the time, and had other things to worry about. Perhaps this individual broker and the individual self-employed home based valuer were more interested in their commission / targets / bonus than anything else? Why else would they and the bank let a loan slip through when they know the borrower could not pay it back once the interest only period was over?
Ever heard of that happening before?
Perhaps an investigation should be carried out, do you not think? So history will not be repeated, so to speak. Do you think its ok the valuer valued it as a 6 bedroom, double glazed centrally heated property? How do you explain two other valuers, proper valuers! -valued it at nearly half that (one that year, one a year afterwards), as it was really a 2 bedroom cottage?
This was a buy to let. Had she been through a mortgage experience before?
No. It was a means of "getting her foot on the property ladder", the broker said. She was inexperienced and had not a business head. She did not even know a copy of the valuation report was supposed to have been to be sent out with the loan offers. There was no documentation from the bank at the time saying she should have got a valuation report. Have you ever heard of that happening, no valuation report with loan offer, but bank reluctantly releasing it after several requests years later?
Now, I have answered your questions, Grizzly. Any chance you would please have the courtesy of answering mine, the ones I asked you already, seeing as you say you have experience of "arranging valuation reports". Here they are again, the questions I asked you on Friday:
(a) You wrote "The valuation report is a report that values the property. It is not a structural report. The information is for the banks benefit. They are only interested to see if the house is worth the money being advanced against it.
I wrote "Correct. That is what is supposed to happen. But what happens if the house is
not worth the money being advanced against it?"
(b) Were all valuers proper, reputable valuers who worked as auctioneers / valuers, and who had training and experience in valuing property?
(c) Would an engineering technician / draughts-man qualification suffice to be on a bank valuation panel?
(d) Did you ever come across a valuation where extra rooms were added, a property value - or potential buy to let income increased etc? A yes or no answer will suffice.
Thank you.