Mortgage Valuation Fees

Valuation Fees For Mortgage

When you apply for a mortgage for  a property you want to purchase or remortgage , the lender will value it to see how much it is worth. This allows them to justify the mortgage loan amount you are asking from them. The fees lenders charge to determine the value of the property is called a valuation fee.

Lenders often charge valuation fees before the property valuation takes place. Borrowers are informed about these fees when they apply for a mortgage on a new home purchase.

Not all lenders charge valuation fees, in fact most lenders offer free valuations on remortgages and purchases. The fees charged may depend on the loan amount. Some lenders, like Halifax, charge flat valuation fess of £100 on your purchase application.

The valuation is carried out (only for mortgage purposes) to check if the property is worth the money paid. This means the surveyor won’t go into details about the condition of the property.

If a home buyer needs the details’ condition survey of the property, then it is advisable to go for a homebuyer survey. This survey is usually more expensive, but it will give you a lot more details on the property’s condition.

The valuation fee ranges from £100 to £800, depending on the lender and the property price.

Valuation Methods Most Lenders Use,

Automated valuation: This is an automated valuation model (AVM) the valuation can be carried out without visiting the property.

Desktop Valuation: Valuations are carried out on sales prices around the area with the help of local knowledge without a surveyor visiting the property.

Physical valuation: The Valuer will visit the property and do a physical inspection of the property. They will also look for the market data and condition of the property.

What Is a Mortgage Valuation Fee?

Why lenders require a valuation

Many mortgage lenders offer free valuation but some lenders charge valuation fees to cover the cost of the third party surveyor.

This is usually non refundable fees payable at the time of the mortgage application. Normally valuations fees is charge on specialist buy to let like HMO or company buy to let. Many Mortgage lenders charge valuation fees on purchases only but some do charge valuation fees on remortgages too.