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When you apply for a mortgage, your lender will arrange a mortgage valuation – sometimes called a mortgage valuation survey or mortgage survey – to check whether the property is worth what you're paying for it. Find out what mortgage valuations involve, what mortgage surveyors look for and what happens if the property is valued lower than expected.
KEY INFORMATION
When you apply for a mortgage, your lender will commission a mortgage valuation to help them decide whether the property is worth what you’ve agreed to pay for it and provides suitable security for the loan.
Mortgage valuations are often referred to as a mortgage valuation survey or a survey for a mortgage.
Mortgage valuations also help lenders calculate the loan-to-value (LTV) ratio, which is the amount you want to borrow in relation to the value of your home. The LTV will determine the mortgage rates you are eligible for. The lower your LTV, the more mortgages will typically be available to you.
Lenders may also commission a mortgage valuation when you remortgage.
To avoid confusion, it’s important to note that mortgage valuations are not the same as:
Instead, mortgage valuations are for the benefit of the lender – not you.
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If you’re wondering what does a mortgage surveyor look for during a mortgage valuation, the answer depends on the type of mortgage valuation the lender instructs the surveyor to carry out.
Traditionally, the surveyor would visit the property in person and compile a report. But increasingly, mortgage surveyors are valuing houses from their desktop and sometimes by driving-by to see the property from the outside too.
You won’t get to choose which type is undertaken, the lender will decide.
Factors that may have a bearing on the decision of whether to visit the property in person or not might include things like:
Some lenders use desktop mortgage surveys rather than carrying out a full inspection.
This type of mortgage valuation uses publicly available property information, including from the Land Registry, property portal archives, satellite and street-view imagery, as well as analysing the sold prices of similar properties locally to give a valuation figure.
These mortgage valuations are sometimes carried out with the help of an index-linked, Automated Valuation Model (AVM). These can estimate values according to how much house prices have either increased or decreased in a certain area or postcode, since a previous Land Registry entry.
In some cases they will conduct a ‘drive-by valuation’. This is when the surveyor assesses the property from the outside. They’ll usually do a basic inspection of the outside of the property, looking for major problems on the roof or walls, which could affect the value of the property.
Here’s how a mortgage valuation survey compares to a house survey:
| Feature | Mortgage valuation survey | House survey |
|---|---|---|
| Purpose | For lender | For buyer |
| Scope | Basic | Detailed (level of detail varies by survey type) |
| Result | Provides lender assessment of value and whether it’s suitable for lending on | Gives buyer a report on the condition of the property, highlighting potential issues |
| Required? | Yes (for mortgage) | Optional |
While valuation surveys are most commonly arranged by a bank or building society as part of a mortgage application process, there are other reasons why you may need a valuation report. These may include if:
In these instances you can choose your own valuation surveyor and it’s important to shop around. Be sure to speak to your surveyor before appointing them and ensure they have satisfactory qualifications, accreditation, experience and insurance.
You can instantly receive quotes from qualified surveyors in your local area with our handy Valuation Survey tool.
Mortgage valuation survey costs usually vary depending on the size of the property, although some lenders charge a flat fee.
However, some lenders offer free valuations as part of a mortgage deal but don’t let that alone sway you, make sure you speak to an expert to find the best mortgage for you.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
A mortgage valuation report is for the benefit of the lender and you may not necessarily see it. However, this will depend on the lender. Unlike a house survey, the mortgage valuation report is designed to help the lender assess risk rather than provide advice to the buyer.
When a mortgage surveyor reports that a property is worth less than the agreed sale price it’s known as a down valuation. One scenario where this might happen is if house prices are falling faster than in other areas and there’s a difference between what estate agents and sellers believe the house is worth and the opinion of the surveyor.
When a mortgage valuation is lower than the agreed sale price it can cause major problems with your mortgage offer because the mortgage lender may reduce the amount of money they are willing to lend you. You may also not be able to borrow at the same interest rate.
When a property you want to buy is down-valued, assuming you want to continue with the purchase, your first step should be to try to renegotiate with the seller. If the seller won’t reduce the price, or if you’re remortgaging, you may be able to challenge a down valuation.
If this doesn’t work and if you still want to try to buy the house, you may be able to borrow more on a different mortgage, so it’s a good idea to get fee-free mortgage advice.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
What if the reverse happens and your mortgage valuation is higher than the purchase price? This tends to be because the purchase price is lower than the market value.
Assuming there are no problems with the valuation and that all the boxes are ticked regarding your application, when the valuation has been completed you’ll usually get your mortgage offer a week or so later but this can vary based on individual circumstances. For more on the mortgage timeline, see how long does it take to get a mortgage offer.
So with a house valuation what do they check? If the surveyor conducting the valuation believes the property needs further investigation they will tell the mortgage lender. But bear in mind the level of detail regarding defects is limited and you may not even see the report.
With mortgage valuations, depending on any defects that may be picked up, it may mean your lender decides not to approve your application unless there is further investigation or until the issue is remedied.
Mortgage valuations can flag up defects to lenders that may impact the property’s value. If you’re wondering what surveyors look for during a mortgage valuation, these are some of the most common issues that may be highlighted.
Comments will vary depending on the circumstance, for example they could report there is structural movement and that you need to get a structural engineer or building surveyor to make a detailed investigation and give you a full report identifying the cause and the costs of the work necessary to ensure future stability, before they can give a valuation. Or it could be they recommend specialist advice if there are trees close to the property. Read our guide on Subsidence: What it is and how to prevent it.
If there is evidence of damp it may suggest you should instruct a damp and timber treatment contractor to investigate the full extent.
The surveyor feels the property is concrete built. Your lender may require you to instruct a structural engineer or building surveyor to conduct an intrusive survey to assess the property to confirm if it was built using concrete.
Spray foam insulation can put stress on roof timbers and reduce air circulation, causing rot. As surveyors are finding spray foam insulation in lofts, they are having to report it. Even if it is well applied, because of its very nature, it is very hard to assess the condition of the loft and roof underneath the insulating foam. This means most surveyors recommend more investigation – at which point mortgage lenders simply refuse to lend unless the spray foam insulation is removed. Read more in our guide – Spray Foam Insulation – A Warning.
If you’re asking about a house valuation for a remortgage and what you can expect, the answer is it’s the same mortgage valuations process as if you’re buying a property. The lender will check what the property is worth before approving you for a new mortgage deal.
However, if you are remortgaging with the same lender, and not borrowing a different amount or changing your term, this is known as a product transfer and will not typically include a valuation.
Get fee-free remortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
With mortgage valuations, depending on your property, the lender may ask for additional documents:
A lender may ask for a Structural Defects Warranty (SDW) if the property is under 10 years old. Or it has been converted or extensively renovated. This will be provided by the developer or bought by the original homeowner. They’re designed to provide cover in the event of needing to carry out repairs or remedial works resulting from of structural defects in new buildings. Read our guide on New Build Home Warranties – what they do and don’t cover.
If you live in a flat, or are considering buying one, your mortgage lender may ask to see the building’s EWS1 form. The form is evidence that a building with potentially combustible cladding has had a fire safety assessment. Find the latest information in our guide on EWS1 forms.
Mortgage valuations are for the benefit of the lender for them to assess if the property you want to borrow a mortgage on is worth the agreed sale price.
Mortgage valuations can also flag up potential defects that may impact the property’s value.
Bear in mind that you may not see a copy of the mortgage valuation survey, and if you do see it, it won’t go into detail about the condition of the property. You’ll need to have a house survey in order to get a full report on the condition of the property.
If the mortgage valuation comes back higher than the agreed purchase price, it simply means you are buying the house for less than the current market price.
If your lender charges anything, you can expect to pay between £100 and £1,500 – or even more in some cases. For example with Santander, the mortgage valuation fee is £180 on all properties up to £2.5 million while Halifax charges a flat £100 fee.
This is known as a down valuation and it can cause major problems with your mortgage offer. The lender may reduce the amount of money they are willing to lend you. Also you may also not be able to borrow at the same interest rate. Find out more in our guide on Down Valuations.
Yes, it usually means your mortgage application is progressing, but it doesn’t guarantee approval.
It involves a surveyor assessing the property’s value, either in person or remotely, using market data and comparable sales. The mortgage valuation helps the lender decide whether the property provides suitable security for the mortgage.
A mortgage valuation survey is carried out by a surveyor on behalf of your mortgage lender to confirm the property’s value as part of the mortgage application process. Many buyers refer to it as a survey for a mortgage because it’s required by the lender before approving the loan. It is not a detailed inspection and should not be confused with a house survey.
No – a mortgage valuation survey is for your lender and checks the property’s value, while a house survey is a detailed inspection of the property’s condition for the buyer.
A mortgage surveyor assesses the property’s value on behalf of the lender. As part of the mortgage valuation, they look for factors that could affect the property’s value and their report helps the lender decide whether to approve the mortgage.
The mortgage lender usually organises the mortgage valuation. The survey for a mortgage is arranged on the lender’s behalf, while a house survey is arranged by the buyer. If you want a detailed inspection of the property’s condition, you’ll need to arrange your own house survey.
Not necessarily. The mortgage valuation report is prepared for the lender, and some lenders do not provide a copy to borrowers.
A mortgage valuation can be completed in as little as 15 to 30 minutes if the surveyor visits the property. Desktop valuations may be completed even more quickly. After the mortgage valuation has been completed and assuming there are no issues, you’ll usually receive a mortgage offer within around a week. However, timescales may vary depending on your circumstances and between lenders. Read more in our guide how long does it take to get a mortgage offer.
If a mortgage valuation is lower than the purchase price you’ve agreed to pay, it’s known as a down valuation. If this happens, a lender may reduce the amount they’re willing to lend. If this happens, you may be able to renegotiate the price with the seller, increase your deposit, challenge the valuation in some circumstances or explore alternative mortgage options.
During a mortgage valuation, the surveyor looks for anything that could affect the property’s value, such as structural movement, damp, non-standard construction or other significant defects. They will also consider local market conditions and recent sale prices of similar properties.
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