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        Mortgage declined after valuation survey

        Has your mortgage been declined after a survey or valuation? You can still get a mortgage! Find out your next steps in our in-depth guide!

        Firstly, have you had a mortgage declined in the last 12 months?

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        Which lenders have you already tried?

        40% of our customers had been declined elsewhere before coming to us. The brokers we work with will be able to assess your circumstances and then identify the right lender for you instead of going direct.

        — Choose from the tiles below to continue:

        When you apply for a mortgage, the lender will carry out a valuation to check that the property you’re buying is worth enough to secure the loan you’ve requested.

        The valuation report the lender commissions may also show serious defects that might be spotted at the time of the valuation, such as major roof repairs or damp.

        As a result this can sometimes lead to your application being declined.

        Whilst such news is always disappointing, it can just be a small setback on the journey to buying your future home.

        To help you understand your options and determine the best course of action, this guide will explain:

        Why was your mortgage declined after the survey?

        There are three main reasons why a lender might refuse your mortgage after carrying out a valuation or after a survey has been completed.

        1. Their valuation is less than you’ve agreed to pay

        When a lender carries out a valuation on your property, they may feel that it’s worth less than you’ve offered for it.

        This is called a ‘down-valuation’.

        In some cases, this will lead them to reject your application as the amount they are willing to lend is much lower than you require. In others, they might agree to lend you a reduced amount.

        For example, if you’ve had an offer accepted at £250,000 and requested a 90% mortgage, but the lender values the property at £240,000, they usually won’t lend you more than 90% of that valuation.

        This would be £216,000, while you’d need £225,000.

        In this case you have several options.

        You can:

        • Renegotiate with the seller to bring down the price
        • Make up the difference by putting down a bigger deposit
        • Appeal the decision with your lender
        • Start a new application with a different lender

        Before you do anything, it’s wise to speak to a broker first.

        They can advise you on your chances of success by appealing the decision or applying to another lender. They’ll also help to ensure you get the best possible deal on your mortgage.

        2. The property has structural issues

        Certain structural issues will trigger an automatic rejection from some mortgage lenders, including:

        Should this happen, you’ll either need to repair this issue or try to find a mortgage with a different lender.

        To find the right lender, it helps to work with the right broker. They will know which lenders are the most and least strict about structural issues highlighted during a valuation and can help you apply to one with a better chance of success.

        3. The property has unusual features

        Some lenders are more cautious than others when it comes to the types of property they will approve a mortgage for.

        These lenders tend to avoid homes with ‘non-standard construction’. That is, anything other than a typical bricks and mortar property.

        This is because less common building materials, such as concrete or wood, are more prone to damage and weathering and so are classed as higher risk.

        Some examples of properties with non-standard construction are:

        In some cases, the feature that caused a mortgage rejection could be the same feature that made you fall in love with the property. It doesn’t make it impossible to get a mortgage, but you’ll need to find the right lender.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from a mortgage expert.

        What can you do if your mortgage is declined after a valuation?

        Whatever the reason behind your rejection, you will always have options.

        Before you proceed, take your time, and follow our three steps to success:

        1. Find out why you’re application was declined

        Before you even think about reapplying for a new mortgage, you need to find out why you’ve been rejected for the first one. To do this, you’ll need to speak with your lender.

        Did they discover a structural issue? If so, how bad is it? Or was it simply due to the property type falling outside your existing lender’s eligibility criteria?

        Whatever the reason, you simply face being declined again if you don’t get to the cause of why this happened.

        2. Speak to an experienced mortgage broker

        If you suspect your mortgage was declined based on non-standard construction or a structural issue, speaking with a broker who has experience getting mortgages for people in similar circumstances could make all the difference when you reapply.

        If you get in touch we can match you with an advisor we work with who specialises in situations exactly like this.

        They’ll be able to help you pinpoint the reason for refusal and explore your options from here.

        3. Prepare to reapply

        Once you’ve found out why your first application was declined and you’ve spoken to a broker, you’ll be ready to take the next steps with their support.

        This could simply mean re-negotiating a new price with a seller or more lending with your existing provider.

        If you need a new lender, you’ll be much better prepared for this application with the knowledge and expertise to help boost your chances of success.

        Will you lose your valuation fee if the mortgage is declined?

        Yes, you will. Whether your mortgage is approved or declined as a result, the valuation has been carried out by a professional surveyor and the fee covers the charge for this service.

        There are some circumstances where you can challenge the surveyor’s valuation. If you’re successful and your mortgage is approved, you’ll avoid paying out again for any further mortgage surveys.

        If this isn’t an option or you’re unsuccessful, it’s important to choose your next lender carefully – one who tends to look more favourably on these types of situations.

        Get matched with an experienced mortgage broker

        It’s never good news when your mortgage is declined following a valuation but, as you can see, there’s still a number of strong options available to you and the route to your next home doesn’t have to be permanently blocked as a result.

        This is where we can help! Using our unique broker-matching service we will match you with someone who has the right knowledge and expertise to deal with your situation.

        To start the process, make an enquiry or give us a call on 0808 189 0463.

        Our Broker-Matching Service Guaranteed!

        We want you to have complete confidence in our service, and get the best chance of securing your mortgage. We guarantee to get your mortgage approved where others can’t – or we’ll give you £100*

        Learn More


        An actual valuation, depending on the complexity, can be done within an hour.

        In terms of the reporting process, from surveyor to lender, this usually takes around one week. But, again, some valuations may take longer if a more detailed report’s required.

        It can be done in a couple of weeks.

        Once the valuation report has been received the lender will look to move straight to the offer stage. So, if there’s no issue with the valuation then it all depends how quickly all parties can exchange contracts.

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        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us as well as any of our own are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.