Shawbrook clarifies position on valuations and lending in Scotland
Based on feedback from the broker space as well as its own research, Shawbrook has revised its approach in support of desktop valuations during a time where valuers are unable to carry out physical inspections.
Currently, the lender use AVM to support the application process for single dwellings up to 75% LTV which it plans to continue to do, and the changes are an enhancement that simply builds desktop commentary into case applications that may not meet AVM requirements.
Shawbrook has also issued documentation disclosing the full split of their approach to valuations across all application types, along with a detailed fee scale in support of its panel of professional broker partners.
This allows property investors and landlords to benefit in spite of the current restriction in valuation instructions, and helps to move applications forward in support of funding requirements. Given the ongoing uncertainty, having a set fee scale also manages any cost expectations on day one which provides additional comfort for both broker and client.
Additionally, the lender has announced that – effective immediately – it will be resuming its lending activity in Scotland after a temporary pause earlier this month due to the challenges presented by CV-19.
Head of Sales for Shawbrook, Gavin Seaholme comments;
“Valuation is such an important issue, regardless of whether or not we are facing unprecedented challenges such as Covid-19, and we have been focused on being the safe pair of hands that brokers need to support their clients in this area. Building desktop commentary to support AVM applications seemed like a straightforward and elegant solution to cater for this short term situation, and we were pleased to deliver this to market rapidly in support of our brokers.
The key is allowing both AVMs and/ or desktop valuations in order to arrive at a completion. The fact that brokers can instruct the desktop day one and have the comfort of one set fee inclusive of the reinspection, is the level transparency we look to apply across the board.
In terms of our stance around lending into Scotland, this was always something that was to be a temporary measure, and we are delighted to be able to support this region moving forward”.
Lucy Barrett from Shawbrook Broker Partner, Vantage Finance adds;
“Given the challenging environment we all face, it is hugely positive to see lenders like Shawbrook being proactive in the way they look to support. Their clarity of thought and subsequent approach to the critical issue of valuation makes a lot of sense, as helping clients navigate their way through an uncertain property market is paramount.
The ability to carry out an AVM supported by a desktop valuation for more complex properties will not only assist with managing expectations, but will help to deliver a positive outcome for brokers and clients at a time when they need it more than ever”.