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Mortgage Declined At Valuation

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Nov 14, 2022

Mortgage Declined At Valuation

Having your mortgage application declined can be extremely disheartening, especially after the valuation survey has been conducted, as it may feel like you were so close to moving into your new home before being declined for a mortgage.

Thankfully, while being declined for a mortgage won’t do you any favours, all is not lost, as there are still things you can do to improve your situation and possibly still be approved for a mortgage in the near future.

For expert mortgage advice, you should consider Loan corp, as we have extensive knowledge of the industry and can help you get mortgage approval without any issues.

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What Is A Valuation Survey?

A mortgage valuation is an assessment conducted by mortgage lenders to check to see if the value of the property you are getting a mortgage for will be worth the amount you intend to loan from the mortgage lender.

This is due to the fact that if you are unable to afford your mortgage repayments, the lender will need to repossess your home and resell it in order to break even on the deal.

These surveys are usually conducted by authorised surveyors that are hired by mortgage lenders. They may need to visit the home in order to complete the valuation process, but this isn’t always the case.

You can also get an independent valuation done if you’d prefer and present this to your lender, as this could possibly save you money and may help you get your mortgage application approved.

There are various things that a surveyor will look at to determine property value, but we will discuss these in more detail later on.

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Why Would A Lender Decline Your Mortgage Application After A Valuation Survey?

There is a multitude of reasons that could cause your mortgage application to be declined after a property survey, so we’ll discuss some of the most common reasons below.

The property is worth less than what you’ve agreed to pay for it

If you’ve made an offer on a property, and the property survey determines that the home is not worth that much, then this is called a down valuation.

If you find yourself in this situation, then you have a few options available to you:

Increase your deposit

If you have some extra capital and can afford to increase your deposit, then you should approach your lender and ask them if they can present you with a new mortgage offer that will include this new higher deposit.

This option certainly isn’t for everyone, as most people will put what capital they can spare into their deposit, so putting a larger deposit down, will not be a viable option for most people in this situation.

Renegotiate with seller

If your chosen lender’s surveyor determines that the property is not worth the amount the seller is asking for, then you should consider speaking to them and making a lower offer.

While they likely won’t be all that happy with the suggestion, realistically, the property value determined by the surveyor will likely be closer to what the property is actually worth.

This means that even if the lender were to approve your mortgage for the price that you and the seller agreed upon, you would have likely ended up losing money if you decided to resell the property later on.

Appeal against the survey and get an independent valuation

If you and your mortgage broker disagree with the results of the valuation survey, then you can appeal against the survey and hire an independent surveyor at your own cost to conduct another survey.

This may sometimes help your case, but if not, then you will be stuck with a valuation fee from the independent surveyor and have had your mortgage refused, so you should only go this route if you have consulted with a mortgage broker and they are sure it would be a good idea.

Find another mortgage lender

If your chosen lender has declined you for a mortgage, then you should consult with your mortgage broker about maybe choosing another mortgage lender. Some mortgage brokers only work with certain lenders, so you may have to change brokers as well if you want to use a different lender.

Sometimes a new lender may be more lenient than the lender who declined your application, so it might be a good idea to get an independent evaluation and present this to your new, more lenient lender.

While this may not always work, your mortgage broker should be able to offer you some advice on whether they think it will be a good idea or not, as they should help you find the right lender for you and your situation.

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There are issues with the property

Sometimes your mortgage will be immediately declined after valuation if the surveyor has found certain serious problems with the property, which is called Automatic Mortgage Rejection (AMR). Some of these serious problems include:


If you are looking to get a mortgage on a flat based in a high-rise building that features cladding, then you may, unfortunately, have your mortgage application rejected immediately.

The reason for this is that the cladding added to many high-rise buildings in the past has proven to be highly flammable. Sadly, one of the reasons we are aware of this is due to the fact that the Grenfell Tower caught alight back in 2017, and 72 people died in the resulting fire.

Since then, mortgage lenders have been wary of offering mortgages on flats based in buildings with exterior cladding, as it takes more effort to get a valuation survey done due to there only being 291 people in all of the UK qualified to carry this task out.

Unfortunately, in this situation, the best thing to do currently would be to look for a flat without exterior cladding, as there is still a lot of legislation that is yet to be put into effect that will make the process easier in the future.

Japanese Knotweed

While it is definitely still possible to have a mortgage approved on a property that contains Japanese Knotweed in its garden, some mortgage lenders are still wary of this treacherous weed.

Japanese Knotweed or Fallopia Japonica originates from Japan, as its name suggests and is incredibly hardy, as it was one of the first plants to come up after a volcanic eruption, as its roots are able to penetrate volcanic rock.

While this is an incredible feat of nature, it becomes a lot less impressive if you end up with Japanese Knotweed growing through the foundation of your home!

This was why many lenders were wary of offering mortgages on homes that had Japanese Knotweed growing around them.

Thankfully, new legislation regarding the weed was passed in March 2022, so as long as you meet the rest of the lending criteria and take necessary preventative measures, such as getting the Knotweed removed by a member of the Property Care Association (PCA).


While the world now knows about the dangers of asbestos, this wasn’t always the case, as many homes around the world were still built with the material until the late 1990s.

While it is possible to get a mortgage on a home that contains asbestos, nearly half of all the lenders on the market will not consider you for a mortgage deal, as asbestos can be incredibly costly to remove safely.

You and your mortgage broker should assess the situation and determine whether you should negotiate with the seller about removing the asbestos from their home, find a lender that will make a mortgage agreement on a home containing asbestos, or if you should just give up on the property entirely and look elsewhere.

Structural problems

If the property surveyor finds any serious structural problems with the property that could seriously affect its value, then your mortgage will likely be declined.

One of the ways you can get around this is by applying for a buy-to-renovate mortgage instead, which is a specialist mortgage made for people who want to purchase a property in need of some serious renovation work.

Unfortunately, the property might not always be worth your time, as the seller may be unwilling to lower their asking price, which could seriously affect your mortgage affordability, as you will need to purchase the property, as well as pay for the necessary renovations.

The lender found credit issues late in the mortgage application process

If you have a spotty credit history, and your mortgage broker is aware of this, you won’t face all that many problems, as your broker will likely present you with mortgage products tailored towards people with bad credit.

Unfortunately, if your mortgage provider finds any payday loans or any other issues with your credit file that the underwriting process missed the first time around, then your mortgage application could be declined at valuation.

If this is the case, then you and your mortgage broker will need to go back to the drawing board and look for other mortgage providers that may approve you for a mortgage despite these issues.

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What To Do If Your Mortgage Application Is Declined After A Valuation Survey?

If your mortgage application was denied after a valuation survey, then these are some of the steps you should consider taking.

Don’t apply for another mortgage immediately

You may be tempted to reapply for another mortgage application as soon as you can; however, this is generally not a good idea, as your mortgage could be declined again if nothing has changed since the last time you applied.

Too many credit applications in a short span of time can also harm your credit report, which will only make mortgage applications more difficult in the future!

Hire an independent surveyor

As we have mentioned above, if you and your mortgage broker disagree with the valuation survey, then you could always hire an independent surveyor to conduct another valuation survey.

This could possibly help change your mortgage provider’s mind, but you should consult with your mortgage broker before doing this.

Find a new mortgage broker

There are specialised mortgage brokers that specifically focus on clients that have been declined at valuation.

You could also use our services at Loan corp, as we offer expert mortgage advice that could help you end up in your dream home after your first mortgage is declined.

Weigh up your options thereafter

Once you have found a specialist mortgage broker, you should wait until they figure out why you were declined for a mortgage and what can be done to fix this problem.

They may ask you to get an independent survey done, present you with a lender that will provide you with a mortgage regardless of the issues with the survey, or ask you to look for another home entirely if they cannot find a direct solution to your problem.

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Can you get a mortgage with bad credit?

While it will be a lot more difficult, there are some mortgage providers who specialise in dealing with clients that have bad credit, so you should still be able to find a lender willing to provide you with a loan.

Why would I be declined a mortgage in principle?

If your mortgage is declined in principle, this means that you didn’t meet all of the lender’s criteria. If you ask the lender why this was the case, they will likely be able to tell you the reason your mortgage was declined. After this, you and your broker can try and find a solution to this problem.

How long should I wait to reapply for a mortgage?

You should generally wait a few months before applying for another mortgage, as having a large number of credit inquiries can harm your credit file and make it more difficult.

Final Thoughts

The mortgage process can be long and arduous, especially if your mortgage application is declined at first.

Thankfully, it doesn’t need to be this way, as we can provide you with expert financial information at Loan Corp that can help you get into your dream home sooner rather than later so contact us now.

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