Tracker mortgages

An accurate valuation can make the difference between securing your ideal mortgage terms and missing out. This guide walks you through the remortgage valuation process, showing you what to expect and how to prepare your property for the most accurate assessment possible

What is a remortgage valuation?

A remortgage valuation is when a lender checks how much your property is worth before giving you a new mortgage. It’s meant to confirm that the property’s current value is enough to secure the loan if you can’t pay it.

There are many reasons why you might need a remortgage valuation. For example, you might be:

•  Switching lenders. If you’re looking to switch lenders for a better mortgage deal, the new lender might want to know the current value of your property.
• Borrowing more money. If you want to borrow more money against your home, such as for home improvements or other expenses, the lender needs to make sure your property is worth enough to cover the increased loan amount.
• At the end of your fixed rate. If your fixed-rate deal ends, you might want to remortgage to a new deal to avoid moving onto a higher variable rate. A valuation helps the lender assess the new terms. 

Read our guide to learn more and explore your options for remortgaging.

What to expect for a remortgage valuation

There are several ways lenders can perform remortgage valuations.

• Full valuation: A surveyor visits your property for a thorough inspection, assessing its condition, size and unique features and comparing it to similar nearby properties to determine its market value.
• Drive-by valuation: The surveyor inspects the property from outside, often from their car. This method is quicker but less detailed than a full valuation. 
• Desktop valuation: The lender uses recent sales data from similar local properties to estimate your property’s value. This is the fastest and cheapest method for lenders, but it may not be as accurate. 

What happens after a property valuation for remortgage?

There are several extra steps after the remortgage valuation:

• 1. Valuation report: The surveyor writes a report about your property value and sends it to the lender. 
• 2. Lender’s decision: The lender uses the report to decide if they will approve your remortgage. 
• 3. Offer given: If approved, the lender formally offers you the new mortgage terms
• 4. Legal work: Your solicitor handles the legal details, checking everything is ok, and completes the paperwork.
• 5. Completion: Your new mortgage starts, and you begin making payments on the new mortgage.

If your remortgage application is not approved, you might need to stay with your current lender and your existing mortgage terms. If you’d still like to remortgage, you can address the issues identified by the valuation report and reapply later. You can also look for other lenders who might have different criteria for loan approvals.

How to prepare for a house valuation for remortgage

There are many steps you can take to help make sure your remortgage valuation goes well, including:

• Fix minor issues: Repair any problems like leaky taps, broken tiles or peeling paint, which can affect the valuation.
• Research your property’s value: Use online resources such as Zoopla or Yopa to get an immediate estimate of your home’s value based on recent sales data for similar properties. This can help you understand how much your house is worth and if the valuation is fair.
• Ask an estate agent: Get an assessment of what your house could sell for with the help of an estate agent, who can also recommend any changes you could implement to make the most of its features and increase its value.
• Speak to a mortgage advisor: Get personalised advice and guidance through the remortgage process with a mortgage advisor who can help you work out how much you can borrow.

What valuation should I use for my remortgage application?

The lender will usually arrange for a valuation as part of the remortgage process. However, doing your own research can still be helpful. It gives you a good idea of your property’s value, helping you understand if the lender’s valuation is fair.

Here are some simple ways to estimate your property’s market value:

• Compare local asking prices: Look at local estate agents’ listings or their websites to see what people are asking for their homes.
• Check recently sold prices in the area: Websites like Rightmove and Zoopla show how much similar properties in your area have sold for.
• Use an online calculator: Free online tools like Zoopla or Yopa can give you a quick estimate of your home’s value.
• Ask an estate agent: Have a local estate agent visit your home for a valuation.