What Is a Mortgage Valuation and Can You Challenge It?

You might not have heard much about mortgage valuations until you’re deep into the mortgage process and are planning to buy your home. Then, all of a sudden, it feels like the most important thing on your mind.

You’re left asking yourself: what exactly is a mortgage valuation? Is a mortgage valuation a good sign when buying a property? And if your valuation comes back lower than expected, can I challenge it?

Mortgage valuations are not the same as a full property survey and their outcome can have a significant effect on your mortgage application – especially if the valuation does not match the price you’ve agreed to pay.

In this article, we guide you through what a mortgage valuation is, at what stage a mortgage valuation is done, and what you need to do if your valuation comes back lower than your expectations. Let’s begin.

What Are Mortgage Valuations?

A mortgage valuation is a property assessment that is carried out by your chosen mortgage lender in order to confirm whether the property you’re buying is worth the price that you’ve agreed to pay.

The outcome of the valuation provides the lender with an accurate calculation of your loan-to-value (LTV) ratio, which is the amount you’re borrowing compared to the property’s total market value. For example:

Let’s say your property valuation comes in at £300,000.

• You’ve saved a deposit of £30,000.
• This means you’ll need to borrow £270,000 through your mortgage

In this case, your loan-to-value (LTV) ratio is 90%. This means you’re borrowing 90% of the property’s value.

The final LTV ratio will play a crucial role in determining the mortgage deals and interest rates that you may qualify for. This is because it shows how much financial risk the lender faces with your mortgage. As such, a lower LTV will typically allow access to better mortgage rates.

Mortgage valuations aren’t just used when buying a property. Lenders may also carry out a valuation when you remortgage, particularly if you’re applying for a new deal or releasing equity.

It’s important not to confuse a mortgage valuation with other types of property assessments. For example, a mortgage valuation is not the same as:

• An estate agent’s valuation: a price estimate used primarily for marketing the property.
• A buyer’s home survey: a detailed inspection that checks for defects and structural issues.

Crucially, a mortgage valuation is conducted solely for the lender’s benefit. In fact, you may never see the report, and you’ll usually have to pay for it unless your lender includes it in their agreement for free.

Why Is Getting a Property Valuation Important When Buying a Home?

A property valuation is important for lenders to understand and calculate their own risk. In the event of default or repossession, the lender may need to sell the property to recover any losses.

As such, lenders need to be confident that the property they’re securing a loan against is worth the amount you’ve agreed to pay to ensure they can recoup the loan amount if necessary.

Ultimately, while the valuation is not in place to directly benefit you – the buyer – it ensures that you are not paying significantly over the odds.

What Does a Valuation Include and Who Pays for It?

A mortgage valuation report is short and factual. Its purpose is to help the lender quickly confirm whether or not the property is worth the amount you’re borrowing and assess any significant risks that may impact resale value.

For example, the report will typically include:

• Estimated Market Value: The surveyor’s assessment of what the property is worth based on recent local sales.
• Comparable Property Sales: A comprehensive comparison of similar properties sold nearby to support the valuation figure.
• Identified Risks or Concerns: This can include any structural issues, flood risk, or other factors that may affect resale value or lending risk.

It is important to note that this document will typically be presented to the lender only. As such, the borrower may never see mortgage valuation themselves.

How Much Does a Mortgage Valuation Cost?

The exact cost of a mortgage valuation will depend on your chosen lender and the property’s price.

While some lenders may include a free mortgage valuation as a free perk within their mortgage deals, others may charge separately. Typical fees range from:

• £150 to over £1,500: depending on the property’s value and type of valuation required

What Happens if a Property Valuation Comes Back Low?

In the scenario that your mortgage valuation is lower than the offer price, your lender may decide to reduce the amount that they’re willing to lend. This process is known as a “down valuation.”

For instance: If you’ve offered £280,000 for a property, but the surveyor values the home at £265,000, the lender will base the mortgage on £265,000.

When faced with a down valuation, you will need to either:

• Increase Your Deposit Amount: cover the difference between the lender’s valuation and the agreed purchase price out of pocket.
• Renegotiate the Purchase Price: try to agree a lower price with the seller that matches the lender’s valuation.
• Apply With a Different Lender: seek a second opinion in the hope that a new lender values the property higher.

In today’s competitive housing market, down valuations are becoming increasingly common, especially when buyers are bidding above asking price. While it can be frustrating to receive a down valuation, they don’t instantly mean your mortgage deal is lost, and there are steps you can take.

At Boon Brokers, our dedicated mortgage advisers can help you explore alternative lender options, assess which lenders work with different valuation surveyors, and advise whether switching might improve your outcome.

With whole-of-market access to a wide panel of lenders and in-depth knowledge of their criteria, we’ll work with you to find a solution that keeps your mortgage and property plans on track.

Can You Challenge a Low Mortgage Valuation?

Yes, you can dispute a low valuation, however, for the dispute to be successful it will often require comprehensive evidence and insights that demonstrate the valuation was inaccurate.

One of the most common questions we receive at Boon Brokers is: “What if the mortgage valuation is too low?

Knowing what to do if mortgage valuation is low is crucial. If you feel the figure is inaccurate, then you’re entitled to ask your lender for a review.  But they’ll expect strong supporting evidence, including:

• Recent Comparable Sales: examples of similar properties sold nearby within the last 3 to 6 months.
• Evidence of Improvements: documentation for any upgrades or renovations, such as dated receipts, invoices, and before-and-after photos.
• Independent Surveyor’s Report: a second opinion from a qualified property surveyor can help strengthen your appeal.

At Boon Brokers, we help clients understand how to avoid a down valuation before committing to a purchase. By offering tailored advice based on the lender’s criteria, we can flag any potential issues early and help you make informed decisions that support a smoother mortgage application.

How Do You Dispute a Mortgage Valuation?

To disagree with mortgage valuation results, you’ll need to submit a formal appeal through your lender.

If you’re working with a trusted mortgage broker like Boon Brokers, then your dedicated mortgage broker will be able to help guide you through this process.

If you’re planning to dispute a mortgage valuation, it is best to be prepared: lenders will typically only overturn decisions when solid, objective evidence is formally presented.

What Evidence Can You Use to Support a Valuation Appeal?

If you’re wondering how to get a property valuation reconsidered, lenders will expect professional and factual documentation.

The strongest evidence includes:

• Comparable Sales: Submit three or more examples of similar properties sold nearby in the last 3 – 6 months. You can use tools like the UK House Price Index to check recent sale prices in your area.
• Renovation Proof: If you’ve made improvements like a new kitchen or extension, include dated receipts, invoices, and photographs.
• Independent Valuation: A report from a qualified, independent property surveyor can strengthen your case.
• Local Agent Input: Ask a local estate agent to provide a written valuation if it supports your original purchase price.

While there are online tools that offer instant valuation property estimates that could support your appeal, lenders will be much more likely to consider an official independent valuation as evidence.

Can You Get a Second Valuation from Another Lender?

Yes. Each lender will use their own surveyor. Because of this, if your appeal fails or you’re unhappy with the outcome of your mortgage valuation, you can apply with another lender and receive a fresh valuation from a new surveyor.

This route is commonly used by buyers who are seeking to appeal their mortgage valuation. However, it’s important to note that the results are not guaranteed and that the second opinion could actually be higher.

It is also worth considering that switching lenders will require restarting the mortgage application process.

If you’re negotiating after a down valuation, Boon Brokers can help you assess whether a price reduction or a new mortgage application is the best way forward. Our experienced, fee-free advisers will guide you through the pros and cons of each option, helping you make an informed decision that protects your buying position.

Should You Get a Homebuyer Report or Full Structural Survey?

Whether you need a homebuyer report or a full structural report will depend on the property you’re interested in buying. For older or unusual properties, it is best practice to obtain a full structural report (level 3 building survey). For more modern builds, a homebuyers report (level 2 building survey) will usually suffice.

Crucially, a mortgage valuation survey is no substitute for a detailed condition report and will usually only provide detailed information to the lender.

Here’s a simple and easy rule to remember:

• A mortgage valuation protects the lender
• A homebuyer and full structural survey protects you.

So, is a mortgage valuation the same as a survey? Definitely not. Here’s how they compare:

Can A Mortgage Broker Help with a Low Property Valuation?

Yes, when you’re facing a low valuation on a property, a trusted mortgage broker like Boon Brokers can be your strongest advocate.

Our dedicated mortgage advisers can review your valuation report, explain your options clearly, and help you gather the right evidence to support an appeal.

Additionally, if you’d prefer to get your own opinion, we can arrange an independent property valuation through a panel of trusted surveyors.

Our industry insights provide us with a unique advantage. We know which surveyors each lender uses. And so, if you receive a down valuation from a lender, we can help recommend other lenders that use a different surveyor – giving you a better chance of a fairer outcome.

How Can a Broker Help You Appeal or Avoid a Down Valuation?

A reputable and regulated mortgage broker can play a key role in helping you respond to any down valuation strategically.

From compiling evidence to advising on lender-specific policies, a trusted mortgage broker will be able to provide clear insights that will significantly improve your chances of turning the situation around.

At Boon Brokers, we go one step further. As a fee-free mortgage broker, we provide personalised support throughout the entire process. Our dedicated mortgage advisers can help you:

• Help You Understand Valuation Risks: we’ll explain how bidding over the asking price could impact your mortgage eligibility and loan-to-value ratio.
• Navigate Lender’s Criteria: we know which lenders are open to appeals and which use different valuation surveyors.
• Explore Your Options: we can advise whether a revaluation, new lender, or independent valuation is the best next step.

As a whole-of-market brokerage, Boon Brokers works with a wide panel of lenders, and knows which surveyors each one uses. We can seamlessly help you switch to a more suitable lender if a down valuation occurs and arrange independent property valuations if you’d like a second opinion before challenging a lender’s decision.

At Boon Brokers, we specialise in helping buyers navigate complex mortgage situations with clarity and confidence. Our expert advisers offer free, tailored mortgage advice to ensure you secure the right deal – even if the initial valuation doesn’t go your way.

Contact Boon Brokers today for expert advice and fee-free support that puts your homebuying goals first.