Mortgage Valuation: The Process, Purpose and Costs Explained

Mortgage valuation outside of brick town house with white bay windows and sold sign
(Image credit: Getty Images)

Chances are you’ve already come across the phrase ‘mortgage valuation’ if you’re buying a house and need a mortgage. Commissioned by lenders as a way of assessing properties’ suitability for purchase, understanding how mortgage valuations work is a must for any prospective homeowner.

Similar to a building survey, though definitely not a replacement for one, a mortgage valuation helps determine whether a property has fair market value. It also informs the lender about anything that may affect the property’s value as security for a proposed loan, such as significant defects and/or required repairs.

Content Editor

Rob Keal is the Content Editor at Homebuilding & Renovating. With a background in content marketing, he began his career back in 2016 as a freelancer, before honing his craft at various digital marketing agencies. Looking to specialise in DIY and homes, he joined the team in February 2022. 

Renovation has been part of his life since he was nine years old, when his parents bought a medieval cottage and completely revived it, introducing him to kitchen remodels, loft conversions, landscape gardening, and much more besides along the way. A bedroom extension and patio refurbishment are among his next planned projects. He is also passionate about interior design and landscape gardening.