Mortgage guide

Mortgage valuation

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What is a mortgage valuation?

Once you have applied for a mortgage, we will usually arrange for a mortgage valuation for our purposes so that we know the property you are purchasing or remortgaging will be enough security for the loan you're applying for.

If you are buying a home, in most cases you will have been provided a Home Report and we can usually rely on the valuation within that report for our lending purposes.

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What’s the difference between a mortgage valuation and a Home Report?

A mortgage valuation helps us confirm a property’s value and is for lending purposes only, whereas a Home Report provides you with key information about the condition of the property that you are looking to buy.

How do mortgage valuations work and what’s involved?

In Scotland, a mortgage valuation is usually only required when you are remortgaging your property and there can be several ways that lenders carry out valuations.

A valuation may be carried out by a Valuer who visits the property you’re buying or remortgaging and completes a short report. We may also use a Desktop Valuation where a Valuer will use online data such as recent sales data, Land Registry details as well as local knowledge and experience  to make a valuation or an Automated Valuation Model (AVM) which is a computer-generated estimate of value. In both these scenarios the property is not visited. You won't receive a copy of the final report. 

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How much does a mortgage valuation cost?

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Get a free mortgage valuation

We may be able to offer you a free valuation when you move home and take a mortgage with us. The offer is only available on selected mortgages marked with 'Free mortgage valuation'. Exclusions apply. You will not receive a copy of the valuation report. Start an AIP.

When the valuer visits the property

  1. 01

    The valuer may take around 15-30mins to look around the property and conduct the valuation, looking for any damage that might affect its value.

  2. 02

    Once the visit is complete, the valuer will make an evaluation of what the market value of the property is. They’ll look at historical sales of similar property transactions in the area and use their own knowledge of the current market.

  3. 03

    They may also provide information on what the ‘minimum reinstatement value’ is. This is the amount it would cost to rebuild the property from scratch, which can be useful to have when looking for buildings insurance cover during the home buying process.

Does the valuation mean the mortgage is approved?

A valuation being completed doesn’t mean the mortgage is approved, the valuation report can flag issues. For example:

  • If the condition of the property, e.g. general stability of the property, effects the security of the loan that you are applying for
  • Property value being lower than the offer price

There can also be other requirements that may not be met, such as:

  • Applicant eligibility checks not matching the lender’s criteria e.g. affordability checks, personal circumstances changing since initial application.

How long after a valuation can you expect a mortgage offer?

When the valuation has been completed this will usually lead to the mortgage offer which can take around one week (but can vary based on individual circumstances).

What happens if the mortgage valuation is lower than the offer?

This is also known as a ‘down valuation’ and can happen when the valuer values the property lower than the agreed price.

This may mean that we will only be prepared to lend based on a percentage of the purchase price or mortgage valuation (Loan to Value), whichever is lower.

If this happens, we will contact you with next steps.

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What happens if the mortgage valuation is higher?

If you do find yourself with a higher mortgage valuation compared to the purchase price this tends to be because the purchase price is lower than the market value.

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Anything else we can help you with?