Down valuation: what to do if your mortgage valuation comes in low

A down valuation means your lender's valuer thinks the home is worth less than the price you agreed. The lender lends against the lower figure, so you either find the difference, renegotiate the price, try another lender, or walk away. It is stressful, but it is common and usually solvable.

Key points

The lender lends a percentage of the lower of the price or the valuation, so a down valuation creates a gap you have to fill.
Your strongest move is usually to renegotiate, using the valuation as evidence.
A second lender may value differently, but costs a new fee and time.
Your own RICS valuation or a Level 2 survey with valuation gives you independent evidence.
A good mortgage broker can tell you quickly which option is realistic for your case.

How a down valuation works

Say you agree £300,000 and have a 10% deposit. You expected to borrow £270,000. The lender's valuer says £285,000. The lender will now lend 90% of £285,000, which is £256,500. You are £13,500 short.

The lender is not saying the house is a bad buy. It is protecting its own money. But the gap is real, and it needs a plan.

Why valuations come in low

The price is ahead of the evidence. Valuers rely on recent sold prices, not asking prices. In a fast or slowing market, the agreed price can drift away from what has actually sold.
Few comparable sales. Unusual homes, rural properties and new estates can be hard to value, so valuers tend to be cautious.
Condition. If the valuer spots problems, such as an old roof or signs of movement, the figure may drop or the lender may hold money back. See mortgage retentions explained.
A desktop or drive-by valuation. Some lenders value without going inside, which can miss improvements like a new kitchen or extension.

Your five options

1. Renegotiate the price

This is the most common outcome. Share the valuation with the estate agent and ask the seller to meet the lender's figure, or meet you in the middle. Sellers often agree, because the next buyer's lender is likely to say the same thing. Our guide to renegotiating after a survey covers how to make the request.

2. Put more money in

If you have savings, you can increase your deposit to cover the gap. This keeps the deal on track, but be honest with yourself about whether you are now paying more than the home is worth.

3. Challenge the valuation

Your broker can ask the lender to review it. You will need hard evidence, such as three or four recent sold prices for genuinely similar homes nearby. Asking prices and the agent's opinion carry little weight.

4. Try another lender

A different lender will use a different valuer, who may reach a higher figure. It costs a new valuation fee and usually a week or two. A broker will know which lenders are more flexible for your type of property, and whether the switch is likely to help.

5. Walk away

If the seller will not move and you cannot cover the gap, you can withdraw. It is painful, but it can save you from overpaying for a home that is hard to sell later.

Get your own valuation first

Lender valuations happen on the lender's timetable and the report is written for them. If you are worried about price, book your own independent figure early. A Level 2 Home Survey with valuation gives you the condition of the home and the surveyor's opinion of its value in one report. If both your surveyor and the lender come in low, you have a strong case to renegotiate.

Talk to a mortgage broker early

A down valuation is exactly when good advice pays for itself. A broker can tell you whether another lender is likely to value differently, how much extra deposit changes your rate, and whether a different product makes more sense.

If you are buying in the Midlands or anywhere in the UK, Option Finance is a Derby-based mortgage broker we know well. Their team, led by director and senior broker Davi Thakar CeMAP, with specialists Benjamin Kistell and Sukhvinder Tamber, works with high-street and specialist lenders and offers a free first consultation. You can meet the team here.

Frequently missed: check your survey timing

Book your survey around the same time as the lender's valuation. If the valuation comes in low, you then have your surveyor's findings in hand to support a renegotiation, rather than waiting another week. See when to book a house survey.

Your home may be repossessed if you do not keep up repayments on your mortgage. This guide is general information, not mortgage advice.

Get your survey booked, not quoted

Fixed price up front. We find a local RICS or RPSA surveyor, arrange access with the agent and confirm the date.

See your price

Frequently asked questions

What is a down valuation?

A down valuation is when your lender's valuer decides the property is worth less than the price you agreed. The lender then bases its loan on the lower figure, so you need to find the difference or renegotiate.

Can I challenge a down valuation?

You can ask your broker or lender to review it, usually by supplying recent sold prices for similar homes nearby. Lenders rarely change a valuation, but it does happen when the valuer has missed strong evidence.

Will a different lender value it higher?

Possibly. Each lender instructs its own valuer, so a second lender may reach a different figure. You will usually pay a new valuation fee and lose some time, so ask a broker whether it is likely to be worth it.

Does a down valuation mean I am overpaying?

Not always, but it is a warning sign. If the lender's valuer and your own surveyor's valuation both come in low, that is strong evidence the agreed price is too high.

Can the seller refuse to drop the price?

Yes. The seller does not have to accept a lower price. You can then decide whether to cover the gap yourself, try another lender or walk away.

Related guides

Costs and process