Why down valuations happen
When you apply for a mortgage, the lender instructs a valuation to confirm the property is worth what you're paying, protecting their loan, not your purchase. If the surveyor believes the market value is lower than your agreed price, they record a down valuation.
This is more likely in a falling or flat market, on unusual properties with few comparables, where the price looks inflated against recent local sales, or in a fast-rising market where agreed prices have outpaced the evidence. It can also happen after a bidding war pushes the price above what the data supports.
How a down valuation hits your deposit
Example: agreed price £250,000, you planned a 10% deposit (£25,000) and a £225,000 loan.
| No down valuation | Valued at £240,000 | |
|---|---|---|
| Lender's valuation | £250,000 | £240,000 |
| Max loan at 90% LTV | £225,000 | £216,000 |
| Price you must still pay | £250,000 | £250,000 |
| Cash needed | £25,000 | £34,000 |
The £9,000 gap must come from extra deposit, a price cut, or a different lender.
Your options after a down valuation
- Renegotiate the price down to the lender's valuation with the seller.
- Cover the shortfall yourself with a larger deposit if you can.
- Challenge the valuation with evidence of comparable local sales.
- Apply to a different lender, who may instruct a different surveyor.
- Walk away if the numbers no longer work, your offer isn't binding yet.
How to challenge a down valuation
Ask for the reasons
Request the valuation rationale from your lender or broker to understand the basis.
Gather comparables
Find recent sold prices of genuinely similar nearby homes that support your agreed price.
Submit evidence
Provide the comparables to the lender's surveyor via your broker, with clear reasoning.
Be realistic
Successful challenges are uncommon: if it fails, switch to renegotiating or another lender.
A down valuation is a negotiating tool
A lender's surveyor saying the home is worth less is strong, independent evidence. Many sellers will accept a reduced price rather than risk the same thing happening with the next buyer's lender.
Don't overstretch to cover the gap
Finding extra cash to bridge a down valuation means paying above what an independent surveyor thinks the home is worth, and a smaller deposit cushion. Make sure the property is genuinely worth it to you before topping up.