Last reviewed: June 2026
TL;DR- A mortgage valuation is carried out by the lender's appointed surveyor to confirm the property is worth at least the agreed purchase price - it is for the lender's benefit, not the buyer's.
- A mortgage valuation does not assess the property's condition in detail - it does not identify structural defects, damp, subsidence or other issues.
- Buyers should commission their own RICS survey (Level 2 or Level 3) separately to assess the property's condition.
- If the valuation comes in below the agreed purchase price, the lender's LTV is affected and they may reduce the mortgage offer.
What a Mortgage Valuation Is
A mortgage valuation is a brief assessment of the property's market value, carried out by a RICS-qualified valuer appointed by the mortgage lender. Its purpose is to confirm that the property is worth at least the agreed purchase price and that it provides adequate security for the loan. The valuation gives the lender confidence that if the borrower defaults and the property must be sold, the proceeds will cover the outstanding mortgage.
A mortgage valuation is not a structural survey. It does not investigate the condition of the property, identify defects, or provide the buyer with any assurance about what they are purchasing. It is carried out primarily for the lender's benefit. The buyer is not typically entitled to see the full valuation report in all cases, though this varies by lender.
The Mortgage Valuation vs a Survey
Buyers often confuse the mortgage valuation with a survey. They are fundamentally different:
- Mortgage valuation: brief assessment for the lender; confirms market value; does not assess condition; no legal duty of care to the buyer from most valuers.
- RICS Level 2 HomeBuyer Report: condition report and market valuation for the buyer; identifies material defects, risks and items needing further investigation; provides a market valuation for the buyer's own reference.
- RICS Level 3 Building Survey: most comprehensive assessment; detailed report on all visible and accessible elements; recommended for older, unusual or potentially defective properties.
Both a mortgage valuation (mandatory, arranged by the lender) and a buyer's survey (strongly recommended, commissioned by the buyer) should be carried out on any property purchase.
What Happens if the Property Values Low
If the lender's valuation comes in below the agreed purchase price, the lender will base their mortgage offer on the lower (valued) price, not the purchase price. This means the maximum loan is lower than expected, and the buyer must make up the difference from their own funds or renegotiate the purchase price with the seller. A "down-valuation" is a common occurrence, particularly on properties where the buyer may have paid above market value or where comparable sales do not fully support the agreed price.
Automated Valuations
Some lenders use automated valuation models (AVMs) for straightforward properties with substantial comparable sales data, particularly in remortgage cases. An AVM is a computer-generated estimate based on comparable sales data rather than a physical inspection. Where an AVM is used and produces a confident valuation, no physical inspection is required and the process is faster. AVMs are not suitable for unusual properties, properties in thin markets or where the data is insufficient to generate a confident estimate.
Frequently Asked Questions
Who pays for the mortgage valuation?
The mortgage valuation fee is paid by the borrower, typically as part of the mortgage application. Fees range from £0 (where the lender offers a free valuation as a product feature) to £300-£1,500 depending on the property value. Some remortgage deals include a free valuation. Where a physical inspection is not required (AVM), no valuation fee is typically charged.
Can I use the mortgage valuation as a survey?
No. The mortgage valuation is not a survey and does not provide the buyer with a meaningful assessment of the property's condition. Using the mortgage valuation as a substitute for a buyer's survey creates significant risk - structural defects, subsidence, damp or other issues may not be identified before purchase. A separate RICS Level 2 or Level 3 survey is strongly recommended for all property purchases, particularly older properties or those with visible concerns.
What can I do if I disagree with the lender's valuation?
The borrower can challenge a down-valuation by providing evidence of comparable sales at or above the agreed price. This evidence should be submitted to the lender or the lender's valuer for consideration. If the challenge is successful, the valuation may be revised upward. Alternatively, the borrower can seek a valuation from a different lender (though their valuer may reach the same conclusion if the market evidence is limited), or renegotiate the purchase price with the seller.
Is the mortgage valuation report available to the buyer?
Some lenders provide the buyer with a copy of the valuation report; others do not. The RICS Code of Practice on mortgage valuations sets out the circumstances in which valuers owe a duty of care to borrowers. Where the report is provided to the buyer, there is typically a duty of care. Where it is not provided, the duty of care typically runs only to the lender. Buyers should ask their lender or broker whether the valuation report will be shared with them.
