What is a mortgage valuation?
A mortgage valuation is an essential check that your lender will carry out to make sure the property you’re buying is worth the price you've agreed to pay.
It’s the last piece of the puzzle needed before a lender will formally provide your mortgage offer. So it’s important to know exactly what to expect from your valuation - including timescales, costs and what happens afterwards.
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Author - Aidan Darrall Editor - Stuart Bowman
Last reviewed on 11th August 2025
Quick summary
A mortgage valuation is for the lender, not for you. It’s a basic check to make sure the property is worth what you’ve offered for it.
If you want your own peace of mind, you’ll need to get a survey in addition to the mortgage valuation. This is a separate, detailed report on the property’s condition to help you identify any potential issues or defects.
The lender may charge you a valuation fee when you make your application, though some will offer a valuation free of charge.
Do I need a mortgage valuation?
Yes, if you’re buying a home then a valuation is an unavoidable part of the mortgage process. It serves a few important purposes:
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Confirms the property value. Lenders need to be confident that the property is worth the amount you’re borrowing. This ensures that, if anything goes wrong, they’ll be able to recover the amount they lent to you.
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Determines loan-to-value. The valuation confirms the property’s official value, which is then used to work out your loan-to-value ratio. This can influence the mortgage products and interest rates available to you.
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Identifies major issues. While a mortgage valuation is not a full survey, it could highlight significant defects that may affect the property’s value.
When is a mortgage valuation done?
A mortgage valuation is usually done after you’ve had an offer accepted on a property and submitted your formal mortgage application. It’s the final hurdle before a lender can make you a formal mortgage offer, as they need to assess the property’s value to make sure it’s worth the agreed property price.
“It typically takes one to two weeks for a valuation to be carried out after submitting your mortgage application, though it can be quicker depending on the type of valuation your lender chooses and the surveyor’s workload. As your broker, we’ll chase the lender on your behalf if the valuation report seems to be taking longer than expected, to make sure the application process keeps moving forward.”
Luke Hollingdale, Mortgage Expert
How does a mortgage valuation work?
Once your mortgage application is in, your lender will kick-start the mortgage valuation process behind the scenes. Here’s how it typically works:
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Different types of mortgage valuation explained
Not all valuations involve someone physically visiting the property. Your lender will choose the type of valuation they need based on their initial assessment of the property and the level of risk involved. You won’t get to choose which type of valuation your lender goes for, but here are some of the options:
Automated Valuation Model (AVM)
A computer-based valuation that analyses data on recent local property sales to produce an estimated value. Usually used for lower-risk applications, such as a straightforward remortgage.
Desktop valuation
A valuation conducted by a surveyor using online data information like Land Registry entries or recent sales prices.
Physical valuation
A brief inspection of the property by a surveyor, where they’ll look out for major structural issues that could affect its value in addition to assessing sale prices of comparable properties. They may instead opt for a drive-by valuation, where they’ll drive past the property to assess the exterior but won’t go inside the building.
Transcript Mortgage Valuation Report (Scotland)
In Scotland, the lender’s surveyor may simply review the valuation in the seller’s existing Home Report, rather than carrying out a new one.
What do surveyors look for during a mortgage valuation?
Key things that will be assessed include:
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Major defects that could impact the property’s value (such as large cracks, signs of damp or problems with the roof)
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The property’s basic details, such as the number of bedrooms and bathrooms
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Current market value, usually determined by comparing the property to others that have recently sold in the local area
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Location and whether there are any nearby issues, such as flood risks or major planned developments, that could affect the property’s value
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Property type and construction materials, to make sure the property you want to buy is the kind the lender will lend against
It’s really important for homebuyers to understand that a basic mortgage valuation is not a detailed survey. It’s there to identify any issues that could impact the property’s value as security for the loan. So, basically, the surveyor will be looking for any obvious red flags.
What happens after a mortgage valuation?
The lender will review the surveyor’s report to determine whether your property value matches the amount you’ve offered for it (and therefore how much they’re willing to lend).
There are three possible outcomes:
The valuation matches your offer price
If the lender’s happy with everything else, they’ll issue a formal mortgage offer.
The valuation is higher than your offer price
This means you’re buying the property for less than its official market value. Your lender will still base the loan on the purchase price, though, so it doesn’t mean you’ll suddenly be able to borrow more.
The valuation is lower than your offer price
A ‘down valuation’ basically means the property is valued for less than you’ve agreed to pay. As a result, your lender may reduce the amount they’re willing to offer you, which can leave you with a shortfall and impact the interest rates you’re offered.
It can take anywhere from a few days to a few weeks to receive an outcome on your mortgage application after you get a valuation. Timescales depend on the results of the valuation, the lenders’ underwriting team’s workload and the complexity of your application.
What to do if your mortgage valuation is lower than your offer
If the property is valued at a lower price than the amount you’ve offered for it, this means your lender will now only be willing to lend you a percentage of the new, lower valuation figure. This creates a gap between the price you agreed to pay and the mortgage you can get.
Receiving a down valuation can be disheartening, but you have a few options:
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Renegotiate your original offer. It’s not just you being cheeky asking for a lower price - you’ve received an expert assessment stating the property isn’t worth the amount you offered. Some sellers may be willing to renegotiate to avoid the property chain falling through, particularly if they think they might face similar issues with a different buyer.
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Boost your deposit. If you have additional savings and still feel the property is worth the higher price, you may be able to make up the difference with your own funds.
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Switch to a higher loan-to-value (LTV) mortgage product. If you’re able to afford it, it might be possible to choose a different mortgage product with a higher LTV. This could allow you to bridge the gap by borrowing a larger percentage of the property’s value. It’s important to be aware that this may require a new affordability check and will almost certainly come with a higher interest rate.
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Choose another property. It can be a tough decision to walk away from a property purchase, but you may prefer to find a different property that you aren’t paying over the odds for.
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Appeal the valuation. You could challenge the valuation, but you’ll likely need to provide evidence of why you disagree with the surveyor’s report. There are no guarantees your appeal will be successful, either.
“It’s a situation no buyer wants to be in, but getting a down valuation doesn’t mean it’s the end of your homebuying journey! You have plenty of options, and your broker will be able to help you navigate next steps.”
Luke Hollingdale, Mortgage Expert
Is mortgage valuation the same as a survey?
No, not at all. A mortgage valuation is a brief check to confirm the property is worth what you’re borrowing, whereas a survey is a much more detailed inspection to check the property’s condition and to uncover any potential problems.
So, while you’ll always need a mortgage valuation, you should also consider paying for a separate home survey for your own peace of mind. You can find out more information about home surveys on the RICS website.
| Mortgage valuation | Home survey (either a homebuyer report or structural survey) |
|---|---|---|
What is it? | A basic check to assess the property’s value. It only flags major, obvious issues. | A detailed inspection of the property’s condition to identify a range of potential issues. |
Who is it for? | The lender. They instruct a surveyor and the report is sent directly to them to support their lending decision. | You, the buyer. You choose the type of survey you want and the firm that carries it out. A survey gives you a clearer picture of the property you want to buy. |
How is it done? | Often a quick inspection (less than 30 minutes), though a desktop or automated check may be done remotely instead. | A thorough physical inspection of the property. |
How much does it cost? | Typically around £100, but can go up to over £1,500 depending on property size. Valuation fees may be included for free as part of some mortgage deals. | Usually between £400 and £1,500+ depending on the type of survey you choose and the value of the property. |
How long does it take? | The lender usually receives the report within one or two weeks of a physical valuation. | The written report should be sent to you within one to two weeks. |
What happens afterwards? | The lender uses the report to support their decision on your mortgage offer. | You receive a detailed report, which you can use to make an informed decision about the property purchase. |
Mortgage valuation FAQs
It depends on the type. A desktop mortgage valuation can be carried out and the results sent to the lender within a few days.
A physical valuation can take a little longer, usually around or or two weeks for the appointment to happen and for the report to be sent back to the lender. The visit itself is very quick, usually less than half an hour, but it understandably takes time for the surveyor to write up their findings and send it to your lender’s underwriting team.
Your mortgage valuation fee will vary depending on the lender and your property, but you can typically expect to pay around £100 (though this can go up to around £1,500 for larger or more expensive properties). You won’t be able to get a refund once the valuation has been carried out, even if the purchase or mortgage application doesn’t go ahead.
Many lenders offer free valuations as part of their mortgage deal, especially if you’re remortgaging, so it’s always worth checking when comparing your mortgage options.
Just like any other mortgage valuation, a remortgage valuation checks that your property is worth what you’re borrowing for it. However, as you already own the property and likely have a good amount of equity, many lenders will use a quick automated or desktop valuation for remortgages.
It’s also common for lenders to throw in valuation fees for free as part of your remortgage deal, so it might not cost you anything.
Your mortgage valuation should be valid for three to six months. If your property purchase is delayed and the valuation expires, a new one will usually be needed so your lender can make sure the value is current. This may come at an extra cost.
No. While a positive mortgage valuation is a great step, the lender’s underwriter will still need to assess and approve your entire application - which includes affordability and credit checks - before they’ll issue a formal mortgage offer.
Home buying works a little differently in Scotland. It’s the seller’s responsibility to produce a Home Report instead, which should include a survey and property valuation, an energy report and a property questionnaire. So as a buyer, you won’t need to worry about arranging mortgage valuations. Your lender’s surveyor will likely just review the valuation in this existing report.
No. A property valuation, also known as an appraisal, is usually conducted by an estate agent to give you an idea of how much your property is worth. It helps you to decide how much you should list your property for when you put it up for sale.