Why do banks request structural reports when lending money?
When you’re applying for a mortgage or a loan to buy a property, you may be surprised to hear the bank wants a structural report. Whilst this may be somewhat surprising, it is really a matter of the bank or mortgage company managing its financial risk.
Mortgage lenders are essentially investing in your property when they lend money. If the structure turns out to be unsound, due to perhaps subsidence or failing roof structure, then it reduces the value of the building. This means it increases the chances of the value of the property being less than the amount lent by the mortgage company. The lender would not therefore be able to recoup their money lent to buy the property. A structural report helps the mortgage lender assess whether the property is a safe investment.
A structural report gives a detailed assessment of the condition of the building structure. It looks beyond surface-level cosmetic issues and focuses on the integrity of foundations, walls, beams, floors and roofs. For example, what might appear to be a hairline crack to a buyer could be a warning sign of foundation movement or a deteriorating element of structure. Such shortcomings in the structure can be costly to repair.
From the mortgage lender’s perspective, a property with structural issues could cost more to repair than it’s worth. Beyond this, it might not be safe to live in. If the borrower defaults and the mortgage lender has to repossess and sell, they want to be sure the asset holds its value.
From your perspective as a buyer or homeowner, a structural report also provides peace of mind. It’s a proactive step that can help uncover hidden problems before they become expensive headaches.
While it might seem like just another box to tick in the mortgage process, a structural report protects both you and the lender. It’s a critical tool for safeguarding your investment.
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We make all our processes as simple as
possible giving you peace of mind
STEP 1
Get a quote. Refer to enquiry form or email or speak to engineer
STEP 2
Arrange site inspection
STEP 3
Report delivered