Should I Get My House Valued Before Remortgaging

Remortgaging Soon? Why a Property Valuation Could Save You Money

If you are planning to remortgage, it can be useful to have a realistic idea of what your property is worth before you apply. Your property’s value helps determine your loan-to-value (LTV), which can affect the mortgage products and interest rates available to you.

You do not usually need to arrange a formal valuation yourself. When you remortgage to a new lender, the lender will normally carry out its own valuation as part of the mortgage application. This may be completed automatically, remotely or through a physical inspection of the property.

Getting an estimate beforehand can still be useful, particularly if your property has increased in value, you have carried out significant improvements or you are close to moving into a lower LTV bracket.

Do you need a valuation to remortgage?

In most cases, yes. If you are remortgaging to a new mortgage lender, the lender will normally need to establish the value of your property before approving the mortgage.

However, this does not necessarily mean that a surveyor needs to visit your home. Depending on the lender, property and mortgage amount, the valuation could be completed automatically using property data, through a desktop valuation or by physically inspecting the property.

The lender normally decides which type of valuation is required. You therefore do not usually need to arrange a separate formal valuation yourself before submitting a remortgage application.

If you are simply switching to a new mortgage product with your existing lender rather than remortgaging to another lender, the process can be different and a new valuation may not always be required.

Who values your house when you remortgage?

When you remortgage to a new lender, the mortgage lender is responsible for deciding how your property will be valued.

The lender may use an automated valuation model, property data and recent comparable sales, or it may instruct a professional valuer to assess the property remotely or visit it in person.

You can obtain an estimate from an estate agent or arrange your own independent valuation before applying, but the mortgage lender is not normally required to accept this figure. It will use the valuation completed or accepted under its own valuation process when determining the property’s value for mortgage purposes.

This means the figure you expect your property to be worth and the figure used by the mortgage lender can sometimes be different.

Why property valuations matter when remortgaging

Your property’s value is important because lenders use it alongside your mortgage balance to calculate your loan-to-value ratio.

A lower LTV can give you access to different mortgage products and, in some cases, more competitive interest rates. A valuation can also affect how much additional borrowing may be available if you want to raise money as part of your remortgage.

However, a higher property value does not automatically mean you will be able to borrow more. Your income, expenditure, credit history and the lender’s affordability assessment will still need to meet its requirements.

What is loan-to-value (LTV) and why does it matter?

Your loan-to-value ratio is the percentage of your property’s value that you’re borrowing. The lower your LTV, the less risk the lender is taking, and potentially the better the rates they’re likely to offer you.

Why does LTV matter when remortgaging?

Lenders usually offer better rates to borrowers with lower loan-to-value ratios because the risk to the lender is reduced.

Even a small increase in your property value could move you into a lower LTV bracket.

Let’s say your mortgage balance is £180,000, and your home is worth £300,000. Your LTV would be 60%. Now, if your home has increased in value to £330,000, your LTV drops to 54.5%. That small change could open the door to more favourable mortgage products with some lenders.

Getting your house valued before remortgaging gives you a clearer picture of your LTV, which helps you compare deals accurately and make smarter financial decisions. Most estate agents will offer this for free, which can then be used as a guide for the mortgage application. If you need a formal valuation though (for example, buying equity from another owner), a paid for survey from a surveyor may be wise.

How Is Your Property Valued for a Remortgage?

Mortgage lenders can use different methods to value a property. The lender will normally decide which approach is appropriate rather than allowing you to choose.

Automated or desktop valuation

Some lenders can value a property without a surveyor visiting it. They may use property databases, previous transaction information, local sold prices and other market data to estimate the property’s value.

This can make the valuation process very quick, particularly for standard properties where there is plenty of comparable sales data.

Drive-by valuation

A drive-by valuation involves assessing the property externally without completing a full internal inspection. These are less common than automated valuations or physical inspections but may still be used in some circumstances.

Physical mortgage valuation

A lender may instruct a valuer to visit your property and provide a valuation for mortgage purposes. The purpose is primarily to establish whether the property represents suitable security for the mortgage and to give the lender a market value.

A mortgage valuation should not be confused with an RICS Home Survey. A lender’s valuation is primarily for the lender’s benefit and is not designed to provide you with a detailed assessment of every defect or repair required at the property.

The type of valuation used can depend on the lender, property, loan-to-value and information available about the property.

How do I get my house valued before remortgaging?

You do not usually need to arrange the lender’s mortgage valuation yourself. The lender will normally organise this once you apply.

Before applying, however, it can be useful to estimate what your property may be worth. You could:

• Check recent sold prices for similar properties in your area.
• Use an online property valuation tool as a rough guide.
• Ask one or more local estate agents for a market appraisal.
• Arrange an independent RICS valuation where you need a more formal opinion of value.

An estate agent’s appraisal or online estimate can be useful when planning your remortgage, but it does not guarantee that the mortgage lender will use the same figure.

Should I get an estate agent to value my house before remortgaging?

An estate agent’s valuation can be a useful and usually inexpensive way to get an idea of what your property may sell for in the current market.

You do not normally need an estate agent’s valuation for the mortgage application itself. The mortgage lender will carry out or arrange its own valuation.

If you do ask an estate agent for an estimate, it can be sensible to compare it with recent sold prices and, where possible, obtain more than one opinion. An estate agent’s suggested asking price may not necessarily be the same as the market value a mortgage lender ultimately uses.

Signs your property may have increased in value

You might not be a property expert, but there are some telltale signs that your home’s value could have gone up since you last mortgaged it. For example:

• You’ve made improvements like a new kitchen, loft conversion or extension
• House prices have risen in your local area
• There’s increased demand in your neighbourhood, such as better schools or transport links
• Similar properties nearby have recently sold for a higher price

If any of these apply, it’s a good idea to explore a valuation. Even small increases in value can move you into a better LTV bracket and may unlock savings.

When might a valuation not improve your remortgage options?

A higher valuation does not always guarantee better mortgage rates.

For example:

• Property prices in your area may have fallen
• Your mortgage balance may still keep you in the same LTV bracket
• The lender’s surveyor may value the property conservatively
• Your affordability may still limit lender options

This is why understanding your overall mortgage position is just as important as the valuation itself.

How to estimate your property value before remortgaging

There are a few ways you can get an idea of your property’s value before you start your remortgage application:

• Online valuation tools – These can give you a rough estimate based on recent sales in your area.
• Speak to local estate agents – Getting two or three opinions can help you find a realistic average.
• Hire a RICS surveyor – For a formal and accurate valuation, particularly useful if you’re remortgaging to release equity, however, this will come at a cost so may not be needed. Speak with your mortgage adviser first who can guide you.

While an estate agent’s estimate is helpful, remember that lenders rely on their own appointed valuers, so there may be a difference between what you’re told and what the lender agrees with.

Need help interpreting what a valuation means for your mortgage options? At Kerr & Watson, we take the guesswork out of the process and help you understand exactly where you stand.

Can you release equity when remortgaging?

If your house has gone up in value and you’ve built up equity, you may be able to borrow more than your current mortgage balance and release funds from your property.

People often use this to:

• Make home improvements
• Fund a deposit for another property
• Consolidate debts
• Cover school fees or other major costs

Bear in mind that borrowing more may increase your monthly repayments, or you might pay a slightly higher interest rate depending on your LTV. That’s why tailored advice is so important. We’ll help you weigh up the pros and cons based on your financial goals and affordability.

How much does a remortgage valuation cost?

In many cases, the lender’s valuation is free, especially if you’re staying with your current provider. However, there are situations where you might have to cover the cost, especially if:

• You request a full RICS valuation independently
• You switch to a lender that doesn’t offer free valuations
• The lender requires a specialist report (e.g. structural survey)
• You are using a lender that does not offer free basic valuations

Valuation fees can range from around £150 to £1,000+, depending on the property and level of survey required. At Kerr & Watson, we’ll always make sure you understand the potential costs involved so there are no surprises.

How long does a remortgage valuation take?

The valuation itself can sometimes be completed very quickly, particularly where the lender can use an automated or desktop valuation. A physical valuation may take longer because an appointment needs to be arranged and the valuer must submit their report. Timescales vary between lenders and properties.

Risks of Not Getting a New Valuation

Skipping a valuation or relying on outdated figures could mean missing out on better mortgage deals. If your lender underestimates your home’s value, you may end up in a higher LTV band, which means:

• Higher interest rates
• Limited product availability
• Less flexibility for borrowing additional funds

You may also face the risk of a down valuation, when the lender’s surveyor believes your home is worth less than you expected. This can derail your remortgage plans unless you’re prepared. This can still happen even if you obtained your own valuation beforehand, as lenders use their own appointed surveyors who may assess the property differently.

When is it particularly useful to estimate your property value before remortgaging?

Having a realistic estimate can be particularly useful if:

• Your property has increased significantly in value since you bought it.
• You have completed an extension, loft conversion or other major improvements.
• You are close to moving into a lower LTV band.
• You want to raise additional money when remortgaging.
• Property prices in your area have changed significantly.
• Your property is unusual and may be difficult to compare with nearby homes.

If your estimated value could make the difference between two LTV bands, it is worth discussing this with your mortgage adviser before applying. Different lenders may use different valuation methods, and choosing the lender solely on the assumption of a particular property value could cause problems if the eventual valuation comes back lower.

What happens if the lender values my house lower than expected?

If the mortgage lender values your property below the figure used on your application, your loan-to-value will be higher than expected.

For example, if you wanted a £240,000 mortgage and estimated your property at £400,000, you would expect the mortgage to be at 60% LTV. If the lender instead valued the property at £375,000, the LTV would increase to 64%.

This could mean the mortgage product you originally selected is no longer available if it has a maximum LTV of 60%.

Depending on your circumstances, the options could include choosing a mortgage available at the higher LTV, reducing the amount you want to borrow, challenging the valuation where the lender allows this, or considering another lender.

Can you challenge a remortgage valuation?

Sometimes, although the process varies between lenders.

A lender may allow a valuation to be challenged where there is strong evidence that the figure used is incorrect. This could include recent completed sales of genuinely comparable properties or information about significant features or improvements that may not have been considered.

Simply disagreeing with the valuation or providing an estate agent’s higher estimate will not necessarily be enough.

Some lenders have strict requirements for valuation appeals, including the number, location and age of comparable sales they will consider. Your mortgage adviser can check the lender’s process and whether there appears to be suitable evidence for an appeal.

Does a higher property valuation mean I can borrow more?

Potentially, but the property’s value is only one part of the assessment.

A higher valuation can reduce your loan-to-value and may increase the amount of equity available in the property. This can be relevant if you are remortgaging to raise additional funds for purposes such as home improvements, debt consolidation or another permitted reason.

However, the lender will still assess whether the additional borrowing is affordable based on your income, expenditure and other commitments. A property having sufficient equity does not, by itself, mean the lender will agree to the amount you want to borrow.

Conclusion

Getting an idea of your property’s value before remortgaging can help you understand your likely loan-to-value and the mortgage products that may be available.

You do not normally need to arrange the lender’s formal valuation yourself. When you remortgage to another lender, it will usually decide how the property needs to be valued as part of the application.

If your property has increased in value, you have completed significant improvements or you are close to an important LTV threshold, understanding the likely valuation before applying can be particularly useful.

At Kerr & Watson, we can help you assess your remortgage options and consider how the value of your property may affect the lenders and products available to you.

Need help understanding how your property valuation could affect your remortgage?

At Kerr & Watson, we help homeowners understand their loan-to-value, compare lenders, and secure the right remortgage deal.

Speak to Kerr & Watson today to understand your remortgage options and secure the right deal for your circumstances.