When buying a home with a mortgage, your lender will require a valuation on the property. This reassures them that the home is worth the loan amount.
It's important to note that a mortgage valuation does not serve the same purpose as a home survey, and one cannot replace the other. The valuation benefits the lender and won't give a buyer details of the home.
What Does A Mortgage Valuation Check?
A mortgage valuation ensures that the property is worth the price the buyer has agreed to pay.
If you require a buy-to-let mortgage, the mortgage valuation will check the potential rental value, which can influence a lender’s decision on the amount a person can borrow.
Below are the three types of valuation surveys a lender can use:
Desktop Valuation
A desktop valuation is when a valuation is determined based on research of local house price data and the property market. Some lenders may use Automated Valuation Models (AVM).
"Drive-by" Valuation
This involves driving past the property. The valuer will visit the area and view the exterior of the home, but does not go inside. They will also conduct research on recent property sales in the area.
Property Visit
This is a brief inspection of the home to assist with the valuation for the lender. The purpose is to check the general condition and any obvious concerns that could impact the lender's decision to grant a mortgage.

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What Does the Valuation Surveyor Look For?
When a valuation surveyor visits a property to conduct a mortgage valuation, they will usually only look for any major issues that need to be flagged.
Some of these include:
Subsidence and structural concerns
Flooding risks
Damp and mould
Obvious electrical or heating issues
External cladding
Short lease terms
Building regulation compliance
Is a Mortgage Valuation the Same as a Survey?
No, a mortgage valuation and a house survey are not the same. A mortgage valuation is designed to provide reassurance and security to a lender, while a house survey is for the benefit of a buyer.
Below, we look at the key differences between a mortgage lender's valuation and a property survey:
Mortgage Valuation | Property Survey |
---|---|
Benefits the lender | Benefits the buyer |
Provides reassurance to the lender | Provides peace of mind for buyers and can assist with negotiations |
Quick, often remote, brief assessment of property value | Detailed, on-site inspection of property condition |
Value only; minimal assessment of condition | Structural integrity, repairs, potential risks, compliance issues |
Less expensive, sometimes free | Higher cost but provides useful infomation and potential long-term savings |
Required by the lender | Not legally required but highly recommended |

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Is A Mortgage Valuation Enough When Buying A House?
A mortgage valuation isn’t enough when buying a house and a property survey is recommended. This can give you an idea of the condition of the home and save you from purchasing a property with issues or unforeseen costly repairs.
Buyers can also use survey findings to negotiate the price of the property if issues or defects are detected.
Below is a breakdown of the different surveys available:
RICS Home Survey Level 1 (Condition Report)
The Level 1 Condition Report is the least detailed RICS Survey that can be carried out. It’s best suited to new and conventional properties and homes without previous issues. The report will cover major issues with the property, but it’s not heavily detailed.
RICS Home Survey Level 2 (HomeBuyers Survey)
The Level 2 survey is suited to conventional properties less than 50 years old. It provides an overview of the condition of the home and flag any major issues. Services such as water supply and gas are reviewed, in addition to internal and external elements of the building.
RICS Home Survey Level 3 (Building Survey)
A Level 3 survey is suitable for most property types and is particularly recommended for older or unconventional homes. It is a detailed look at the condition inside and out, including materials used in the construction and any required improvements.
Snagging Survey
Snagging surveys are designed specifically for new build homes. It will flag any concerns or unfinished work that can then be raised with the developers. They can then work to rectify any issues before you move in.

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Who Carries Out the Mortgage Valuation?
A qualified property valuation surveyor will carry out the mortgage valuation on behalf of your lender. Your mortgage lender will arrange for the mortgage valuation to take place but it is the buyer who will usually pay for it.
Who Needs to See the Mortgage Valuation?
As the valuation is undertaken for the lender’s purposes, they are the only ones who need to see the report. A buyer can request to see it, but usually, the lender will not share the report with the buyer and is under no obligation to do so.
If any major issues are noted, the lender will notify the buyer. In some cases, they may request that the buyer arrange additional surveys. For example, if they suspect damp is an issue, they may require a Damp Survey report.
What Happens if the Home is "Down Valued"?
In some instances, the mortgage valuation may be lower than the amount a buyer has offered for a property.
This can be frustrating for both the buyer and the seller, especially as it impacts the amount a mortgage provider will lend, which is usually 90% of the valuation amount.
For example:
If you have offered £225,000 for a property, with a 10% deposit of £22,500, the mortgage amount would be £202,500.
However, if the lender values the house at £200,000 and the most they will lend is 90% of the value at £180,000, you will need an additional £22,500 (making your deposit now £45,000) to meet the asking price.
In the event of a "down valuation", you can either:
Increase your deposit to make up the deficit
Negotiate the price with the seller
Try applying for a mortgage with a different lender
Pull out of the purchase

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Frequently Asked Questions:
How Much Does a Mortgage Valuation Cost?
Lenders typically charge around £233* for a mortgage valuation, however, some lenders may waive the fee for certain mortgage products. This is at their discretion and will vary between banks and lenders.
How Much Does a Home Survey Cost?
The cost of a survey is notably higher than the cost of a mortgage valuation. RICS surveys cost on average £445* for a Level 2 survey and £629* for a Level 3.
*Based on average service costs for Compare My Move users. See how our data works.
Who Pays For a Survey?
In Scotland, the seller is required to arrange and pay for a Home Report. In the rest of the UK, it’s the home buyer’s responsibility to pay for a survey.
Buyers are also required to pay for the mortgage valuation arranged by the lender.
Why Do I Need a Mortgage Valuation?
If you require a mortgage to buy a property, a lender will arrange a valuation to help decide whether they should approve a mortgage application. The valuation reassures them that the home is a viable investment.
The valuation helps to calculate the property's Loan to Value (LTV), giving them an idea of how much they are willing to lend. Typically, lenders will offer 90% of a property's value, with the buyer's deposit making up the remaining 10%.
Arranging a Property Survey
As a mortgage valuation will not provide the same level of detail as a property survey, arranging a survey is thoroughly recommended. It can provide invaluable information about the home you are looking to buy.
Compare My Move can connect you with up to 6 local surveyors when you fill out our simple surveying form. With us, you can discuss your requirements directly with the experts and compare quotes between companies.
All surveying partners must meet our strict verification process before joining our network. Companies offering Home Surveys and Valuation Reports must be registered with The Royal Institution of Chartered Surveyors (RICS).
*Based on average service costs for Compare My Move users and our own research. See how our data works.