Remortgage Valuation

Why Lenders Require a Valuation

When a lender offers you a mortgage, they are taking a risk — if you stop making payments, they need to be confident they can recover the money owed by selling the property. The valuation confirms that the property is worth enough to cover the loan.

The valuation establishes your loan-to-value (LTV) ratio, which is one of the most important factors in mortgage pricing. Lenders offer their best rates at lower LTVs because their risk is lower.

Key LTV thresholds where rates typically improve:

• 90% LTV — Many more deals become available
• 85% LTV — Rates start to improve noticeably
• 80% LTV — Significant improvement in available rates
• 75% LTV — Access to many competitive products
• 60% LTV — Typically the best rates available

The valuation is carried out for the lender's benefit, not yours. It is not the same as a full structural survey and will not identify all potential issues with the property. If you want a detailed assessment of your property's condition, you would need to commission a separate survey.

Types of Remortgage Valuation

There are several types of valuation that lenders use for remortgages:

Desktop valuation (automated valuation model — AVM):

• Carried out remotely using property data, recent comparable sales, and algorithms
• No surveyor visits your property
• Completed quickly — often within 24–48 hours
• Increasingly common for remortgages, especially at lower LTVs
• Often provided free of charge

Drive-by valuation:

• A surveyor visits and inspects the property from the outside only
• They assess the property's exterior condition, location, and comparable sales
• Quicker than a full physical valuation but more thorough than a desktop assessment

Full physical valuation:

• A qualified surveyor visits the property and carries out an internal and external inspection
• They assess the condition, size, layout, and any obvious issues
• This provides the most thorough assessment and is used for higher-risk or unusual properties
• Takes longer to arrange — typically one to two weeks

The type of valuation the lender requires depends on factors such as your LTV, the property type, and the lender's own policies. You generally cannot choose which type is carried out.

What Affects Your Property Valuation?

Several factors influence the value a surveyor or automated system places on your property:

• Recent comparable sales: The prices achieved by similar properties in your area are the primary driver of valuation. Surveyors look at properties of similar size, type, and condition that have sold recently nearby.
• Property condition: The general state of repair, maintenance, and presentation of your home affects its value. Well-maintained properties typically value higher than those needing significant work.
• Location: Proximity to amenities, transport links, schools, and the general desirability of the area all play a role.
• Size and layout: The total floor area, number of bedrooms and bathrooms, and the practical usability of the space matter.
• Improvements and extensions: Properly executed home improvements (with appropriate permissions and building regulations approval) can add value. Unapproved alterations can actually reduce value or create complications.
• Market conditions: The broader property market conditions at the time of valuation affect the figure. In a rising market, valuations tend to be higher; in a falling market, they may be more conservative.
• Property type: Certain property types (such as non-standard construction, ex-council properties, or properties above commercial premises) may be valued more cautiously by some lenders.

What Happens If the Valuation Is Lower Than Expected?

A lower-than-expected valuation — sometimes called a down-valuation — can be disappointing and may affect your remortgage. Here is what it means and what you can do:

Impact on your remortgage:

• Your LTV will be higher than anticipated, which may push you into a higher rate band
• In some cases, the LTV may exceed the lender's maximum, and the application could be declined
• If you were planning to release equity, you may be able to borrow less than expected

Your options:

• Accept the valuation and proceed — You may still be able to remortgage, just at a slightly higher rate due to the increased LTV
• Challenge the valuation — If you believe the valuation is inaccurate, you can ask the lender to reconsider. Provide evidence such as recent comparable sales that support a higher value
• Try a different lender — Different lenders use different valuers and different valuation methods. A desktop valuation with one lender might produce a different figure than a physical valuation with another
• Reduce your loan amount — If possible, using savings to reduce the amount you borrow can offset the impact of a lower valuation
• Wait and try again — If the property market in your area is improving, waiting a few months and trying again might result in a higher valuation

Preparing for a Physical Valuation

If a physical valuation is required, the surveyor will visit your property. While you do not need to do anything dramatic, a few simple preparations can help:

• Ensure access to all rooms — The surveyor needs to see every room in the property, including lofts and outbuildings if applicable
• Clear clutter — A tidy, well-presented property gives a better impression and makes it easier for the surveyor to assess the space
• Address obvious maintenance issues — Fix any visible problems like dripping taps, broken tiles, or peeling paint if you can. While these may seem minor, they can influence the surveyor's assessment of the property's overall condition
• Prepare a list of improvements — If you have carried out improvements (loft conversion, extension, new kitchen, etc.), have details and any relevant certificates available
• Provide access to the loft — If your loft is boarded or converted, the surveyor will want to inspect it
• Make sure the property is warm and well-lit — First impressions matter, even for professional valuers

The physical valuation itself usually takes 15-30 minutes for a standard property. The surveyor will inspect the property, take measurements, and then prepare their report for the lender.

Free Valuations and How to Get One

Many remortgage deals include a free valuation as part of the package. This is a significant cost saving, particularly for higher-value properties where valuation fees can be substantial.

To access a free valuation:

• Look for deals that specifically include it — When comparing products, filter for those that offer a free valuation
• Ask your broker — They can identify which deals include free valuations and factor this into their recommendations
• Check product transfer options — Product transfers with your existing lender typically do not require a valuation at all, saving both time and money

Even if a deal does not include a free valuation, the cost is often modest compared to the overall savings from remortgaging. It should be one factor in your decision, but not necessarily the deciding one.

Remember that the valuation is carried out for the lender, not for you. If you want to know your property's true market value (for example, if you are thinking about selling), you should get an independent valuation or estate agent appraisal.