What Is The Purpose Of Mortgage House Valuation?

If you’re looking to buy a property and you’re not a cash buyer, you’ll need a mortgage. Before offering you a loan, most lenders will conduct a mortgage house valuation. But what is a mortgage house valuation? We’re exploring this in our helpful guide.

Is a mortgage house valuation essential?

The main reason you need a mortgage house valuation is to check the value of the property so that the loan you receive is a good reflection of the market value. The price you pay for the property needs to be accurate and not over-inflated. This is to protect the financial interests of the mortgage lender. It’s essentially a way for the lender to discern whether the loan amount you’re asking for matches up to the value of the property.

How is it different from a house survey?

You may wonder how a house survey is different to a mortgage valuation, seeing as they can both give you a valuation of the property you’re hoping to purchase.

With a mortgage house valuation, you may or may not get a site visit. Whereas, with a house survey, you will definitely get a site visit and a report which outlines any major visible issues found within the property. A mortgage valuation can often not be relied on in itself. You should get both to ensure that the seller’s asking price is reasonable.

Often, the mortgage valuation will be based on average selling prices for similar properties in the same area. But if a lender is at all unsure of the value, they may visit the property.

How much does a mortgage house valuation cost?

Many lenders offer this service for free, however, some will charge a fee. This is usually calculated based on the value of the property and typically ranges from £150 – £1500.

Secure a mortgage today

Speak to Agentis today to arrange your free initial consultation. We can talk you through the house-buying process and make sure all your fees are factored into your budget, including essential property valuations. We’ll help you get on the property market and secure the right type of mortgage for your circumstances.