Your home may be repossessed if you do not keep up repayments on a mortgage.
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £149 to £750 and this will be discussed and agreed with you at the earliest opportunity.
When you buy a home, you’ll come across the terms “valuation” and “survey,” and it’s easy to assume they’re the same thing. They’re not — and understanding the difference could save you from costly surprises. Here’s what you need to know.
What a mortgage valuation is
A mortgage valuation is carried out for the lender, not for you. Its purpose is simply to confirm that the property is worth roughly what you’re paying — enough to secure the loan against. It’s a basic check, often fairly brief, and it’s about protecting the lender’s interest. Importantly, it is not a survey of the property’s condition, and it won’t flag most defects.
Why a valuation isn’t enough
Because a mortgage valuation only confirms the property is adequate security for the loan, relying on it as your assessment of the home is a common and expensive mistake. It won’t tell you about damp, structural issues, a failing roof or other problems that could cost you dearly after you move in. For that, you need a proper survey.
What a survey does
A survey is carried out for you, to assess the property’s condition and highlight any problems. There are different levels — from a mid-level survey suitable for conventional homes to a full structural survey for older, larger or unusual properties. A survey gives you a genuine understanding of what you’re buying, helps you budget for repairs, and could even give you grounds to renegotiate the price.
Which do you need?
You’ll almost always need a mortgage valuation as part of getting your loan. On top of that, arranging your own survey is strongly advisable — especially for older or non-standard properties. The cost of a survey is small compared with the cost of discovering a serious problem after completion.
Plan for both
When budgeting for your purchase, factor in both the lender’s valuation and your own survey. We can help you understand the process and what to expect as you arrange your mortgage.
