A remortgage valuation provides your lender with a clearer picture of your property's value, which may influence the remortgage terms they offer.
You can read our article on how to add value to your home before getting your valuation.
Why Do I Need a Valuation When I’m Remortgaging?
Valuations are often a requirement for lenders during the remortgaging process. They will use it to determine the current Loan-to-Value ratio (LTV ratio) rate of your home. This ratio helps the lender assess the level of risk and may influence the interest rate or terms they offer.
A high LTV ratio will typically come with increased monthly repayments and a higher rate of interest, while a low LTV ratio can mean reduced monthly repayments and a low interest rate.
Who Does the Valuation for a Remortgage?
Your chosen mortgage lender will hire a RICS-regulated surveyor to carry out the valuation on their behalf. This cost is typically passed on to the customer.
The surveyor will begin the valuation by checking the current value of the property and comparing this to the requested cost. They will then submit their findings to the mortgage lender, who will then provide their mortgage offer.
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How Will My Property Be Valued for a Remortgage?
Your mortgage lender will instruct their surveyor to carry out the valuation in one of two ways. The method of mortgage valuation is dependent on your lender and the property type. Older homes may require a visit to the property, while a newer home may only need a desktop valuation.
Part of a valuation may also include a minimum reinstatement value. This means your mortgage lender will know how much the property would cost to rebuild.
Desktop Valuation
The surveyor can use online valuation tools to estimate the property’s current market value, which helps establish the LTV ratio. This includes sold properties in the same area and the sale price for current listings. They may use information taken from the Land Registry Database and consider current market trends. The valuation does not require a visit to the property itself.
Drive-By Valuation
The surveyor can carry out a "drive-by" valuation which does not require them to enter the home. From the road they can inspect the general condition of the property’s exterior. Combined with desktop research, they can determine an accurate market value.
Read more on What Do They Look For in a Mortgage Valuation?
In-Person Valuation
A lender may require the valuation to inspect the interior and exterior of the house, known as an in-person valuation. If the surveyor finds any major issues of concern, the mortgage lender may require the homeowner to arrange a specialist survey (for example, a damp survey if damp is suspected).
Be aware that the in-person valuation does not replace a property survey.
For more information read: What is the Difference Between a House Survey and a Mortgage Valuation?
What if I Think the Valuation is Wrong?
A “down valuation” is when the surveyor has provided a valuation that is lower than your estimate. A lower-than-expected valuation may affect your loan-to-value ratio and the mortgage products available to you. This can be especially problematic for those looking to take out equity to work on home improvements.
It is important to note that this doesn’t mean that you will be refused your requested remortgage amount. However, a lower valuation may also result in a higher LTV ratio. This may result in fewer low-interest products being available to you.
Read more on What To Do if a Surveyor Devalues House?
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Can I Get a Second Opinion?
You can choose to challenge your down valuation by having an independent valuation survey conducted. This can be a time-consuming process; however, it will give you a case to debate the initial valuation survey.
RICS Valuer
A RICS valuer is often recommended because their valuations are widely accepted by lenders. Their findings will be considered by mortgage lenders. Bear in mind that this is a more costly option but it can be beneficial long-term if the lender accepts a higher valuation of your home.
Financial Adviser
A financial adviser can help review your remortgage application and discuss your available options.
Estate Agent
Asking local estate agents to provide a valuation is a cheaper option. However, it’s important to note that mortgage lenders may only accept valuations provided by those who are regulated by the Royal Institution of Chartered Surveyors (RICS).
How to Find a Remortgage Solicitor?
The best way to find a remortgage solicitor is by using a comparison site. Compare My Move can connect you with up to 6 verified conveyancers. Simply fill in our conveyancing comparison form to compare quotes and save up to 70% on your remortgage costs.
All of our conveyancing partners are regulated by one of the following to ensure all cases are carried out to the highest standard:
Solicitors Regulation Authority (SRA)
Council for Licenced Conveyancers (CLC)
Law Society of Scotland (LSS)
Law Society of Northern Ireland (LSNI)
Chartered Institute of Legal Executives (CILEX)
