Mortgage lenders are increasingly relying on ‘desktop’ and ‘drive-by’ valuations when assessing your property for a Remortgage
When remortgaging, some mortgage lenders will opt to carry out a drive-by valuation. In order for this to happen, you will need to pass certain risk checks with the lender.
How to Qualify
Whilst there is no concrete list of requirements we can give you to determine whether your remortgage falls into the ‘drive-by’ or ‘desktop valuation’ category of assessment, we have noticed that the following rules often apply:
1. Your mortgage loan to value must be 75% or lower
We often see drive-by mortgage valuations carried out when your remortgage is equal to, or less than, 75% loan to value (LTV). For example, if your home is worth £250,000 and you are looking to borrow £187,500 or less.
It is also important to mention that where your loan to value is 65% LTV or less, we have often known mortgage lenders to carry out a basic desktop valuation only. A desktop valuation involves relying solely on data held online or on a shared system with other lenders.
2. Your risk profile must be low
For a drive-by or desktop valuation to be carried out, your risk profile must be low. What does this mean? A risk profile is an individual lender assessment and details of these assessments are not made public. However, through our experience, we can give an insight into the factors that could play a part in a mortgage lender risk assessment:
Credit Score & Profile
Having a good credit score and being listed on the electoral roll for every address that you’ve lived at over the last 3 years could lower your risk profile.
A high income sustained for a number of years will count in your favour.
Length of Employment & Profession
Having a highly qualified professional role and having been in your current role for a number of years could help lower your risk profile.
Repaying your cards every month and not having large balances outstanding could contribute to a lower risk profile.
Loan to Value
As mentioned above, having a low loan to value with plenty of equity in your property is seen as one of the main contributing factors to a low-risk profile.
Property Value Stability & Location
Having a property value that has maintained stability over the past decade with no sharp jumps and falls and also living in a location area of steady confidence are both very much seen as major contributing factors to a low-risk profile.
Will I get a drive-by or desktop valuation for my remortgage?
If your remortgage application ticks the majority of the boxes above, then it is likely that your remortgage valuation will be carried out as a drive-by or desktop valuation. There are no guarantees that this will happen, ultimately the final decision is down to the mortgage underwriters who work for your mortgage lender.
Article written by Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)
First Published: 14th June 2018