What Happens If My Mortgage Lender Values the Property Lower Than My Offer Price?

How Down Valuations Affect Your Purchase

A lower valuation creates a shortfall between:

• The price you agreed with the seller
• The maximum the lender is willing to lend

This shortfall must be resolved before the sale can proceed.

Your Options If a Down Valuation Happens

1. Renegotiate the Purchase Price

This is the most common solution. You can ask the seller to reduce the price to match the lender's valuation. Your estate agent can support you in presenting the valuation evidence and negotiating a fair agreement.

2. Increase Your Deposit

If you have the funds available, you can pay the difference yourself. For some buyers, especially in a competitive market, this allows the sale to continue without delays.

3. Split the Difference

Sometimes, both parties compromise - the seller reduces the price slightly and the buyer increases their deposit to cover the rest.

4. Challenge the Valuation

If you believe the valuation is incorrect, your mortgage adviser or estate agent can help you appeal by providing:

• Comparable recent sales
• Evidence of improvements or unique features
• Market data supporting the agreed price

Upshots are not guaranteed, but it can be effective if the valuation was based on incomplete data.

5. Apply With a Different Lender

Different lenders use different surveyors, so a new valuation may come back higher. This approach may take longer, but can sometimes save the sale.

Why Down Valuations Happen

• Fast-moving markets where prices rise quicker than recorded data
• Unique properties that are harder to compare
• Declining market confidence or uncertainty
• Overpriced listings or bidding wars pushing prices too high

A down valuation is not the end of your home purchase - many sales still go ahead with the right negotiation and expert support. A knowledgeable estate agent will guide you through your options, protect your interests and help you reach an agreement that works for everyone.

If your lender values a property lower than expected, stay calm - there are solutions.