First Time Buyers Mortgage Valuations: Everything You Need to Know

When you’re buying your first property, understanding the valuation process is essential. First time buyers mortgage valuations are a key part of every application, helping lenders confirm the property is worth the amount you’ve agreed to pay. While it may seem like just another step in the process, the valuation plays an important role in affordability, risk assessment, and final approval.

This guide explains what valuations are, how they work, what lenders expect, and what first-time buyers should be aware of. This article provides general information only and does not offer regulated mortgage advice.

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What Is a Mortgage Valuation?

A mortgage valuation is an assessment carried out on behalf of the lender to confirm:

• The property’s market value
• Whether it is suitable security for the mortgage
• Whether the agreed purchase price is reasonable
• Any issues that may affect the lender’s ability to lend

It is not a survey, nor is it designed to highlight structural concerns for the buyer. Its purpose is to protect the lender’s financial position.

Most valuations are now carried out through:

• Automated valuation models (AVMs)
• Desktop valuations
• Physical inspections

The type depends on the property’s risk profile and lender policy.

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Why Lenders Require Mortgage Valuations

Lenders use valuations to manage risk. They must be confident that:

• The property can be resold if needed
• The price reflects current market conditions
• The loan-to-value (LTV) ratio is correct
• There are no red flags that could affect the property’s value

For first-time buyers, this ensures the loan amount aligns with market realities, preventing lending against overvalued properties.

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What Happens During a Mortgage Valuation?

The process varies depending on the valuation type.

1. Automated Valuation (AVM)

For lower-risk cases, lenders may rely on computer-generated data such as:

• Recent sold prices
• Local market trends
• Property size and type
• Comparable properties

This is typically instant and requires no inspection.

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2. Desktop Valuation

A surveyor reviews:

• Online property records
• Floor plans
• Photos
• Recent comparable sales

Useful where a physical visit is unnecessary.

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3. Physical Valuation

A qualified surveyor will:

• Visit the property
• Check its overall condition
• Confirm size, layout, and features
• Identify obvious issues affecting value

Physical valuations may be preferred for older, unique, or non-standard properties.

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What First-Time Buyers Should Expect

Understanding what happens next can help reduce stress during the buying process.

1. The Valuation Could Match the Agreed Price

This is the most common outcome. The application proceeds as expected.

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2. The Valuation Could Come in Lower

This is known as a “down valuation.”

If the surveyor values the home below the agreed purchase price, lenders will base lending on the lower value. This may mean:

• A larger deposit is needed
• The loan amount available may reduce
• Buyers may renegotiate the purchase price

Down valuations tend to occur in fast-moving markets or when vendors set ambitious asking prices.

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3. The Valuation Could Highlight Property Risks

For example:

• Non-standard construction
• Damp or structural issues
• Short lease problems
• Nearby commercial activity
• High-risk flood or subsidence areas

These may impact lender decisions or require additional checks.

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How Valuations Affect Loan-to-Value (LTV)

The valuation directly influences the LTV, which is one of the most important factors in mortgage assessments.

Example

• Purchase price: £250,000
• Valuation: £240,000
• Lender bases loan on £240,000

If you planned a 10% deposit:

• Original deposit needed: £25,000
• Revised deposit on valuation: £24,000
• But because the price is higher than valuation, the lender may still require a larger cash deposit to cover the £10,000 gap.

First-time buyers should be aware that LTV affects:

• Available products
• Interest rates
• Maximum borrowing amounts

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How Long Do Mortgage Valuations Take?

Timelines depend on valuation type:

• AVM: Instant
• Desktop valuation: 1–3 days
• Physical valuation: 3–10 days depending on availability

Lenders usually review the valuation report before progressing to underwriting.

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How Much Do Mortgage Valuations Cost?

Costs vary by lender. Some offer:

• Free valuations for first-time buyers
• Free valuations on selected products
• Paid valuations depending on the property value

Paid valuations tend to increase with property price.

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Common Issues for First-Time Buyers

1. Down Valuations

These can delay the transaction and may require renegotiation.

2. Non-Standard Construction

Lenders may decline or require specialist underwriting.

3. Short Leases on Flats

Leases under 80 years can reduce borrowing options.

4. Properties Above Commercial Units

Noise, food odours, or perceived marketability can cause lender caution.

5. Renovation Projects

Properties requiring substantial repair may need further assessment.

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Tips for First-Time Buyers (General Information Only)

Although not personalised advice, many first-time buyers prepare by:

• Reviewing comparable property prices before offering
• Checking the lease length on flats early
• Being aware of any high-risk features (e.g., flat roofs, concrete construction)
• Understanding the difference between a valuation and a survey
• Budgeting for potential valuation outcomes

These steps can help avoid surprises during the mortgage process.

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Mortgage Valuation vs Homebuyer Survey: Key Differences

Many first-time buyers confuse valuations with surveys. Here’s how they differ:

Mortgage Valuation

• For the lender
• Confirms value and security
• Limited inspection
• Not a condition report

Homebuyer Survey or Building Survey

• For the buyer
• Assesses property condition
• Highlights defects
• Helps understand future repair costs

First-time buyers often choose to commission their own survey for peace of mind.

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Summary

For first-time buyers, understanding first time buyers mortgage valuations is essential. The valuation helps lenders confirm the property’s value, suitability, and risk level. The outcome may support the original offer, reveal a lower valuation, or highlight potential risks that may affect lending.

Whether the valuation is automated, desktop-based, or carried out in person, it forms a vital part of the mortgage approval process. Being prepared for each possible outcome can help first-time buyers move through the process more confidently.

This article provides general information only. For tailored guidance, regulated mortgage advice is required.