Mortgage Valuation Explained and What Happens If It Comes In Low

A mortgage valuation is a limited check carried out by your mortgage lender to ensure the property is worth the money they are lending. It is done entirely for the lender's benefit to confirm the home offers secure backing for the loan. The check might involve a short physical visit, a glance from the street, or no visit at all.

If you fail to keep up with your mortgage payments, the lender has the right to repossess the property and sell it to recover their money. According to official guidance from Citizens Advice, the lender will want the property valued to make sure it could get the loan back if the home had to be sold. The lender completes this check before it issues a formal mortgage offer.

This valuation directly affects how much you can borrow. Lenders will only lend based on a percentage of the purchase price or the mortgage valuation, whichever is lower. This percentage is known as the loan to value ratio. If the valuation matches the price you agreed to pay, the mortgage application moves forward to the next stage.

If you are buying in Scotland, the property market works differently. The seller provides a Home Report before marketing the property, which already includes a valuation and a survey. The rules, costs and timings described in this guide apply to buyers in England and Wales.

Desktop, drive by and physical valuations explained

When you submit your mortgage application, the lender decides how to value the property. They do not always send a person to walk through the front door. There are three kinds of mortgage valuation, and the lender decides which one to use.

A desktop valuation is an automated check done from a computer. It is a desk-based valuation that analyses local house price data, such as the Land Registry or a house price index. The lender uses an algorithm to give an automated valuation without anyone physically looking at the property. This is common for standard homes where there is plenty of recent sales data in the same street.

A drive by valuation involves a valuer travelling to the property but only looking at the outside. They do not go in. They observe the property from the street to check it exists, matches the description provided in the application, and has no obvious external problems that would affect its saleability.

A physical inspection is an in-person visit by a valuer. The surveyor takes about 15 to 30 minutes to look round the property for obvious defects. They walk through the rooms to get a general sense of the condition and check that the home matches the details provided in the mortgage application.

What the valuer actually looks at

During a physical valuation, the valuer is assessing the property as security for the loan. They look at the general condition of the home at a glance and note obvious defects that could affect its value, and they check the home matches the details in the mortgage application.

The valuer also looks at comparable sales, which are recent sales of similar homes nearby, to judge whether the agreed price is realistic.

They do not test the electrics, check the boiler, climb into the loft, or lift the carpets. Hidden defects and other costly problems are unlikely to appear in the valuation.

How much it costs and how long it takes

Many lenders offer free valuations as part of their mortgage deals. Where a fee applies, it is usually payable in advance, when you send in the completed mortgage application form. You should check the terms of your specific mortgage product to see if a fee applies.

Where a lender does charge, a valuation should not cost more than a few hundred pounds. One high street lender's published process shows that it generally does not charge a valuation fee, but where a fee applies it is £102 for properties up to 3 million pounds.

How long it takes depends on the lender and the type of valuation. A desktop valuation needs no visit, while a physical valuation has to be booked with the seller or the estate agent.

As an example, the table below shows one high street lender's published timings for a physical valuation.

Other lenders work to their own timings, so ask yours what to expect. Even if you pay for the mortgage valuation out of your own pocket, you might never see the valuation report. The document belongs to the lender, and many lenders do not share a copy with the buyer.

Is a valuation that matches the price a good sign?

When the valuation comes back matching the purchase price, buyers often feel relieved. It means the lender is satisfied with the value of the property as security for the loan. The mortgage application can proceed, and you are one step closer to getting your formal mortgage offer.

However, a valuation that matches the price is not a guarantee that the property is in good condition. It tells you the lender is satisfied with the value, not that the home is free of defects, because a valuation does not include the level of detail of a survey.

You should never rely on a mortgage valuation to confirm the property is in good enough condition to buy. The lender is only concerned with whether they can recover their money in a worst case scenario. They are not checking whether the home will need costly repairs after you move in.

What a down valuation means for your purchase

A down valuation is when the lender's valuation concludes the home is worth less than the agreed price. This is a stressful situation for a buyer because it creates an immediate shortfall in your funding.

For example, if you agreed to pay £200,000 and the valuation comes in at £190,000, the property has been down-valued by £10,000. Because lenders will only lend based on the lower of the purchase price or the valuation, they will base your mortgage on the £190,000 figure.

The shortfall means you cannot borrow the amount you wanted. You now have a gap between the mortgage the lender is willing to offer and the price you agreed to pay the seller. You need to find extra cash to pay the agreed price, or you need to renegotiate the deal.

There are several common reasons for a lower valuation:

• An asking price set too high by the seller.
• An estate agent's valuation that was too high.
• The poor condition of the property.
• Desktop valuations missing recent improvements.

Your options if the mortgage valuation comes in low

When a down valuation happens, you cannot simply ignore it and proceed as planned. You must take action to bridge the funding gap. You have four realistic options to keep the purchase alive.

• Renegotiate with the seller to lower the purchase price.
• Challenge the valuation with the lender using strong evidence.
• Cover the gap yourself by increasing your deposit.
• Apply for a mortgage with a different lender.

Going back to the seller to negotiate a lower price may be more successful than an appeal. A down valuation can be an opportunity to agree a fairer price based on the valuer's independent assessment, although the seller does not have to agree. You can read more about how to renegotiate the house price to help you prepare for this conversation.

Appealing a valuation is an option, but it generally proves extremely difficult. An appeal to the lender usually needs evidence of a clear mistake in the comparable sales used. You need plenty of up-to-date comparable sales of similar homes nearby to build a strong case, and even then there is no guarantee the figure will change.

If you have savings, a buyer can also increase the deposit so the loan amount still works. How much extra you need depends on the loan to value of your mortgage, so ask your lender or a mortgage adviser to work out the figures before you decide. Either way, you would be paying more for the property than the lender believes it is worth.

Trying another lender is a gamble. Another valuer might take a different view of the property's value, but there is no guarantee. The new lender might even instruct the same surveying firm, which could give the same result.

Why a mortgage valuation does not replace a house survey

Many buyers mistakenly believe that if the lender sends a surveyor to the property, they do not need to arrange their own survey. A mortgage valuation is not the same as a house survey. The official guidance from RICS states clearly that a valuation will not include the same level of detail as a survey.

There may be costly problems that are unlikely to appear in the valuation. A home survey is a detailed inspection carried out entirely for your benefit as the buyer. It tells you about the condition of the roof, the walls, the floors, and the windows. It flags urgent defects and hidden risks before you commit to the purchase.

Home surveys follow three RICS levels and are sold at a fixed fee quoted up front. Typical 2026 prices are roughly £300 to £450 for Level 1, £400 to £950 for Level 2 and £600 to £1,500 or more for Level 3, the most detailed, which suits older, larger, altered, unusual or run-down homes. You can read more about whether you need a survey to understand which level fits your property.

You must arrange and pay for a home survey yourself. It is possible to use the same surveyor who does the valuation for your own survey, which may be cheaper, but you must instruct them directly for the survey portion of the work. When you book your own survey, you should look for the letters AssocRICS, MRICS or FRICS after the surveyor's name. You should also check for the words RICS Regulated for the firm, and confirm both on the official RICS Find a Surveyor service.

Under the Consumer Rights Act 2015, a survey must be carried out with reasonable care and skill. Services arranged online or by phone normally carry a 14-day cooling-off period, but if you ask for the work to start inside it, you pay for what has been done.

Common questions

What is a mortgage valuation fee?

A mortgage valuation fee is the charge you pay to the lender to cover the cost of the valuer's assessment. It is payable in advance, usually when you submit your mortgage application. Many modern mortgage deals include a free valuation, but if you do have to pay, it should not cost more than a few hundred pounds.

How long after the valuation do you get a mortgage offer?

It depends on the lender. At one high street lender, the valuer's report usually comes back within five business days of the inspection, and once the valuation is approved the formal mortgage offer is issued within 48 hours. Ask your lender what timings it works to.

Do I get a copy of the mortgage valuation report?

You may not. The valuation is commissioned by the lender, for the lender, and even if you pay the valuation fee yourself you might never see the report.

Can a desktop valuation be wrong?

Yes. A desktop valuation relies on an algorithm and local house price data, so it can miss recent improvements such as an extension or a loft conversion and value the home too low.

Your next steps before you buy

Waiting for the mortgage valuation is a tense part of buying a house, but understanding the process helps you plan your next move. Here is what you should do next.

• Check your mortgage application to see if the lender charges a valuation fee or includes it for free.
• Ask your lender how long its valuation usually takes and wait for it to confirm the result.
• If the valuation comes in low, speak to your lender or a mortgage adviser about what you can borrow, and to your conveyancer about renegotiating the price.
• Do not rely on the valuation to tell you about the condition of the building.
• Choose the right level of RICS home survey based on the age, size, and condition of the property.
• Get two or three quotes from independent surveyors for a Level 2 or Level 3 survey.

A mortgage valuation secures your funding, but a proper home survey protects your future finances. Once your offer is accepted and the mortgage application is under way, you should arrange your own survey to check the condition of the home before you exchange contracts. You can use our directory to find a surveyor near you who can talk you through the right survey for your new home.