What happens during a mortgage valuation?
The valuation is arguably the most important part of getting a mortgage. It confirms if the house you’re buying (or own if you’re remortgaging) is worth the amount stated. Once the valuation is complete, it’s just a matter of time until you receive an offer – assuming all goes well. But what actually happens during the mortgage valuation? Here, we’ve got the lowdown on what you can expect, including valuable insight from a team member who leads on completions.
Here’s what happens during a mortgage valuation
Surveyor values the property
A mortgage valuation involves the lender determining if the property is worth what you’re paying for it. To illustrate, if you’re buying a home for £300,000, the lender needs to validate its worth before deciding to offer you a mortgage. Typically, this is done through a surveyor, who visits the property and conducts a valuation.
What do they look for during the valuation?
Mortgage valuations aren’t as in-depth as full house surveys and usually take between 15-30 minutes to complete. During the valuation, the surveyor will:
- Look for obvious defects that could have an impact on the home’s value
- Confirm key details of the property for the lender, such as the number of bedrooms
- Assess the market value by looking at recent sales transactions and rental figures on similar properties in the area
- They may also provide the mortgage lender with a figure for minimum reinstatements, the estimated cost of rebuilding the property from scratch.
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