Mortgage valuations and home surveys explained

A mortgage valuation and home survey are 2 different steps in the home buying process. The valuation is arranged by your lender, while the survey is organised by you – the buyer. 

Learn more about what they involve, how they differ and ways they can help you secure your next home.

The headlines

  • A mortgage valuation is arranged by the lender to check the value of a property against your mortgage application.  
  • A house or home survey is arranged by the buyer to check the property condition.
  • You might need both a valuation and a home survey as part of the home buying process. If you’re remortgaging, you’ll only need a mortgage valuation.

In this guide

What is a mortgage valuation?

What is a home survey?

What happens if the mortgage valuation is lower than the sale price?

What are the different house survey levels?

How much does a mortgage valuation cost?

How much does a house survey cost?

Frequently asked questions

What is a mortgage valuation?

A mortgage valuation or valuation survey is needed by your lender when buying a new home or remortgaging to a new lender. It checks that the value of the property aligns to your application and makes sure the money you’re borrowing can be secured against your home.

This valuation is usually done automatically, but can sometimes need a physical inspection, which could take longer.

Once the valuation is complete, your lender will receive a mortgage valuation report. You are unlikely to see this, but you’ll be told if there’s an issue with the property value or purchase price. 

Your lender will use this to confirm whether you can borrow against the property and work out your loan to value (LTV) ratio.

What is a home survey?

A house or home survey is a more detailed property inspection that usually takes place when buying a new property. 

The buyer chooses which level of house survey they want and appoints a surveyor to carry out the inspection.  

During a home survey, the surveyor might do: 

  • exterior checks of the roof, chimneys, brickwork, windows and doors
  • interior checks of the walls, ceilings, floors, timber condition and dampness
  • services checks of the plumbing, electrics, insulation and heating system
  • structural health checks to look for major cracks, asbestos or signs of subsidence.

Home surveys can uncover hidden issues before you buy a property, helping you plan ahead.

What happens if the mortgage valuation is lower than the sale price?

If your mortgage valuation is lower than expected, your lender may reduce the amount of money they’re willing to lend you. This is known as a ‘down valuation’ and can affect your mortgage offer.

If this happens, you might need to:

  • pay a larger deposit to cover the difference
  • choose a different mortgage product
  • ask the seller to meet the valuation price.

In some cases, you might have to find a different mortgage provider, or a different property altogether.

What are the different house survey levels?

You can choose from 3 main types of home or house survey, each offering different levels of information and advice. The survey you choose often depends on the age and type of property you’re buying.

Level 1

This is the most basic survey, often used for modern homes and flats in a good condition. The survey will outline:

  • the property’s condition
  • any risks or legal issues with the building or grounds
  • any urgent defects or issues.

It doesn't tend to include specific advice, recommendations or a valuation. So, you might prefer a different level if you’d like a second opinion on the property value.

Level 2

A Level 2 Home Survey, which used to be known as a Home Buyers Report, offers more detail about the property – and often includes a valuation too. At Lloyds, this is known as a HomePlus Survey (Level 2).  

It’s usually recommended for homes and flats in a reasonable condition with a simple layout and minimal renovations.

It will include the same basics as a Level 1 survey, as well as:

  • a more detailed inspection of the property – including the roof
  • advice on any defects or issues
  • more guidance on maintenance and repairs that might be needed
  • a professional opinion on the property’s value – if selected.

This type of survey does not include a full structural assessment.

Level 3

This was formerly known as a Building Survey. It’s the most detailed type of survey you can get, which makes it ideal for homes that are large, old, complex or in poor condition. 

You’ll usually need to arrange this type of survey yourself with an RICS accredited surveyor . They will then customise the survey based on your requirements. For example, you might want to include:

  • an inspection of different services, such as the water and power supply
  • a list of construction materials used for different parts of the property
  • any hidden defects and their probable causes
  • estimated costs and timeframes for any repairs.

How much does a mortgage valuation cost?

It usually depends on your lender and whether you’re buying a property or remortgaging. 

Some lenders charge a flat fee, while others might offer a free valuation survey.

If you’re applying for a mortgage with Lloyds, you can expect to pay £100 for a mortgage valuation on a house purchase. This is the same, no matter the property purchase price. 

If you’re remortgaging to us, we’ll cover the full cost of the valuation.

How much does a house survey cost?

House survey costs will vary depending on the level you choose. For example, Level 3 house surveys tend to cost more than a Level 1 survey.

You can find out more about the costs involved in our dedicated guide.

More about home survey costs

Let's look at the details

  • Yes, you’re likely to need a mortgage valuation when remortgaging. This is because the lender must confirm your property’s current value to work out the LTV. 

    If you’re switching products with your current lender, they may not need a new valuation survey.

  • A desktop valuation is done at a desk rather than in person. A surveyor will work out a property’s value using:

    • market trends
    • sold price history
    • Land Registry records.

    Desktop valuations are mostly used for lower-risk lending or for quick assessments. They can also help determine the value of new buildings or unfinished structures.

  • No, a valuation doesn’t mean your mortgage is formally approved. It only helps the lender confirm that the property is worth the agreed price. 

    There may be other issues or requirements after a mortgage valuation is complete. For example, if the valuation determines the property value is lower than the offer price. 

  • A mortgage surveyor carries out the valuation for your lender. They’ll assess the property to confirm whether it’s suitable security for a loan. 

    Mortgage surveyors may also point out any defects that could affect the property’s value.

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