What is a mortgage valuation

Image of the words Property Value
Canstock Image

What is a mortgage valuation

A mortgage valuation is arranged by the company (lender) who are going to lend you the funds for your mortgage.  This valuation gives the lender a rough guide as to whether the property’s value correctly reflects the purchase price.

When you apply for a mortgage, the lender may send a representative to the property. The representative will want to see all aspects of it including the loft space.

It is not a full valuation.  A buyer would be extremely unwise to depend on the mortgage valuation to value the property and confirm that it is a good buy.  We recommend that you arrange for a survey to be carried out on the property yourself.

This will highlight any issues with electrics, plumbing, potential subsidence and any repairs that the property may need.  You can use this information to negotiate with the seller on the price.

If you are the seller of the property and it is given a low mortgage valuation, all is not lost.

You can use the information contained in the valuation to improve the property to get a better price.

A mortgage down valuation is where similar properties have sold recently for a lower value so the lender will take that into consideration when pricing the property.