If you're buying a home your lender will require a mortgage valuation to assess the property's worth and protect their investment. Our guide breaks down exactly what's involved in the valuation process, what it costs, what to do if the valuation comes in too low, and how Compare My Move can help you protect your purchase.
Summary: Mortgage Valuation Checks
| What They Check | Why It Matters |
|---|---|
| Subsidence or structural cracks | May lower the property's value |
| Damp or mould | Could lead to costly repairs |
| Cladding or external damage | Can affect safety and value |
| Unsafe electrics or heating | May require urgent fixes |
| Flood risk | Impacts insurance and resale |
| Short lease (if leasehold) | Reduces value and mortgageability |
| Missing building regs | Could delay or derail your mortgage |
What Is a Mortgage Valuation?
A mortgage valuation is a quick property check to confirm the home is worth the loan amount. The surveyor looks for major red flags like structural damage, damp, or anything that might affect the property’s value.
It’s not a full survey, and it’s done for your lender, not for you. But it plays a crucial role in whether your mortgage gets approved.
Why Do I Need a Mortgage Valuation?
As a buyer, this is an essential part of the process as it contributes to the lender's decision to approve the mortgage.
If the valuation realises that the home you're buying is not worth the amount you want to borrow, the lender can decline the mortgage application. If there are structural or repair issues with the property, they may request that the buyer pays for a specialist survey.
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Types of Mortgage Valuations
Once you have started your mortgage application with a lender, they will arrange a valuation on your behalf.
Depending on the age and type of property, lenders will arrange one of the following types of valuations:
Property Visit
If the lender feels that a visit to the property is necessary, they'll arrange for a property valuation surveyor to inspect your future home. This is often undertaken on older homes. The seller will be notified so they can provide access, and you'll be kept in the loop to confirm the inspection has happened.
"Drive-by" Valuation
A "drive-by" valuation means the valuer will visit the area and view the exterior of the home but will not go inside. They will also conduct research on recent property sales in the area.
This is quicker than an in-person visit, taking only a few minutes to confirm the property exists and that there are no major obvious defects from the outside.
Desktop or AVM (Automated Valuation Model)
A desktop or desk-based valuation is when a valuation is determined based on research of local house price data and the property market. Some lenders may use Automated Valuation Models (AVM) which can be far more efficient. This can be done quickly, often instantly if AVM is used.
What Does the Valuation Surveyor Look For?
The valuation surveyor checks for anything that could affect the property's value or your ability to get a mortgage. They’ll assess the overall condition and identify any red flags, such as:
Subsidence or structural cracks (e.g. in walls or ceilings)
Flood risk, especially if the home is near a river
Damp or mould, such as peeling paint or discoloured walls
Unsafe electrics or heating, like exposed wires or broken systems
Damaged exteriors, including cladding, brickwork or render
Short lease terms on leasehold properties
Missing building regulation certificates for extensions or conversions
If a surveyor notes any major issues affecting the property, a mortgage lender can decline the mortgage request. They can also request that the buyer pay for a specialist survey if there are any suspected issues.
They may also request that an indemnity insurance policy be put in place for changes to the property or extensions erected before the introduction of building regulation certificates.
What They Won’t Check For
A mortgage valuation is a brief check for the lender. It doesn’t give you a full picture of the property’s condition. Here’s what it doesn’t cover:
Loft spaces, under floors or behind walls
Plumbing, electrics, heating or insulation
Hidden defects or poor maintenance
Future repair or maintenance needs
What’s best for you (as the surveyor works for the lender)
A full report (you may never see it)
To properly check the condition of the property and avoid costly surprises, you'll need to arrange your own RICS survey.
How Much Does a Mortgage Valuation Cost?
You will usually have to pay for the valuation when taking out a mortgage. The average cost of a mortgage valuation is £326, however, some lenders may waive the fee for certain mortgage products. This is at their discretion and will vary between banks and lenders.
A mortgage broker may be able to help you find the best mortgage deal with benefits such as free valuations.
Based on average service costs for Compare My Move users and our own research. See how our data works.
Is a Mortgage Valuation the Same as a Survey?
No, a mortgage valuation and a house survey are not the same. A mortgage valuation is designed to provide reassurance and security to a lender, while a house survey is for the benefit of a buyer. One cannot replace the other.
Below, we look at the key differences between a mortgage lender's valuation and a property survey:
| Mortgage Valuation | Property Survey |
|---|---|
| Benefits the lender | Benefits the buyer |
| Provides reassurance to the lender | Provides peace of mind for buyers and can assist with negotiations |
| Quick, often remote, assessment of property | Detailed, on-site inspection of property condition |
| Value only; minimal assessment of condition | Structural integrity, repairs, potential risks, compliance issues |
| Less expensive, sometimes free | Higher cost but provides useful information and potential long-term savings |
| Required by the lender | Not legally required but highly recommended |
What About a Valuation Report?
Both buyers and sellers can arrange independent valuation reports. A buyer can add this to a Level 2 Survey and a seller can obtain a valuation report if they wish to dispute the mortgage valuation. Much like a property survey, these are separate from the mortgage valuation.
Is A Mortgage Valuation Enough When Buying A House?
A mortgage valuation won't be enough for a buyer when purchasing a home. A property survey is recommended to give a comprehensive idea of the condition of the property you are buying. This can save you from buying a home with numerous issues or unforeseen costly repairs.
Buyers can also use survey findings to negotiate the price of the property if issues or defects are detected.
Below is a breakdown of the different surveys available:
| Survey | Best Suited For | Average Cost | Detail Level |
|---|---|---|---|
| Level 1 (Condition Report) | New and conventional properties without previous issues | £380 | Minimal |
| Level 2 (Homebuyers Survey) | Conventional properties less than 50 years old | £445 | Moderate |
| Level 3 (Building Survey) | Recommended for older or unconventional homes | £630 | Comprehensive |
| Snagging Survey | Designed specifically for newly built homes | £375 | Targeted |
When in doubt, Level 2 surveys offer the best balance of detail and value for most property purchases.
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Who Sees the Mortgage Valuation?
As the valuation is undertaken for the lender’s purposes, they are the only ones who need to see the report. Buyers can request to see it, but usually, lenders won't share the report with the buyer and are under no obligation to do so. As a buyer, you will only see the valuation amount on your mortgage documents.
The seller of the property will also not see a copy of the valuation report. Details are not shared by the lender and it is up to the buyer if they want to disclose the value of the property.
Does a Valuation Mean the Mortgage Offer is Approved?
No, the valuation is only part of the mortgage process. This will take place during the application and will be considered alongside the other information the lender collects about both you and the property.
Only when the lender is satisfied with all checks, including the valuation, will they then issue a mortgage offer.
How Long Between a Valuation and a Mortgage Offer?
There is no set time frame between the valuation and a mortgage offer but it can vary between a few days to a couple of weeks, depending on the lender.
What Happens When a Home is "Down Valued"?
This means that the surveyor has valued the property at a lower price than you, the buyer, has agreed to pay.
For example, if you have offered £225,000 for a property, with a 10% deposit of £22,500, the mortgage amount would be £202,500.
However, if the lender values the house at £200,000 and the most they will lend is 90% of the value (£180,000), you will need an additional £22,500 to meet the agreed sale price (making your deposit now £45,000).
In the event of a "down valuation", you can:
Increase your deposit to make up the deficit
Negotiate the purchase price with the seller
Try applying for a mortgage with a different lender
Pull out of the purchase
Sellers can arrange for their own valuation to dispute the lender's decision
What Happens If The Property is Valued Higher Than the Offer?
In (usually rare) cases where the property is valued higher than the offered amount, there is very little impact on the mortgage offer or property transaction. A seller will not be notified that their property is worth more and the buyer will continue to lend the amount requested in their application.
The lender is only concerned if the property is worth less than the loan amount.
How to Arrange a Property Survey
When buying a property, a survey is thoroughly recommended as it can provide invaluable information about the home you are looking to buy. A valuation from your mortgage lender cannot replace the detail and insight a survey can provide.
Compare My Move can connect you with up to 6 local surveyors when you fill out our simple surveying form. With us, you can discuss your requirements directly with the experts and compare quotes between companies.
All surveying partners must pass our strict verification process before joining our network and be regulated by either the Royal Institution of Chartered Surveyors (RICS) or the Residential Property Surveyors Association (RPSA).
FAQs
How long is the valuation valid?
A mortgage valuation is usually valid for 6 months, according to the Co-operative Bank and Natwest, although Halifax will allow up to 12 months.
Do I need a valuation when remortgaging?
Yes, it is likely you will need a valuation when you remortgage. This is because the lender will want to know the current market value and whether it may impact their decision to approve the loan.
