Chris Belcher, mortgage adviser at A2B Mtg Co Ltd, said that HBOS-backed valuation and conveyancing business Colleys has increased its valuation fees with an average case increase of around £40.
He said: “We’ve noticed the increase in the valuation charges over the last month. It’s a significant rise and indicative of the way lenders’ costs are rising.
“It seems that lenders are controlling more and more chains in the link so that they can dictate fees and it seems to give them licence to charge what they want.”
David Hollingworth, mortgage specialist at London & Country, said: “This is quite a substantial rise that has been levied by HBOS and as a result must be factored into product selection like any fee or valuation.
“There seems to be a general market trend on increasing valuation fees with lenders tending to go only one way. Factors such as these don’t help first-time buyers as increasing costs will keep them out of the market.”
Danny Lovey, sole trader at Basildon-based The Mortgage Practitioner, said: “The issue is not specifically about HBOS and its increase in valuation fees because its overall fees are not too bad when compared to some lenders; its about increasing fees in general.
“Cost have rocketed and continue to do so; remortgage costs have risen by £300 and as a broker this is difficult to justify to customers.”
Paul Fincham, spokesperson at HBOS, admitted that Colleys’ valuation fees have risen on a sliding scale depending on the value of the property. He said: “The increase reflects the rise in processing costs.”
