What does a mortgage surveyor look for?

When applying for a mortgage, your lender will instruct a mortgage surveyor. But what does a mortgage surveyor look for? We have the answers.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Home key with house keyring with calculator.

Image source: Getty Images

A mortgage provides an excellent opportunity to get on the property ladder. When you apply for a mortgage, lenders hire mortgage surveyors to inspect the property before agreeing to lend you any money. The inspection aims to look for factors that could cause lenders to lose money. Let’s find out what a mortgage valuation is and what a mortgage surveyor looks for during a mortgage valuation.

What is a mortgage valuation?

When you apply for a mortgage, the mortgage lender will carry out its due diligence. This involves confirming the value of the property and ensuring it’s a property they can lend against. 

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

The mortgage lender will hire a mortgage surveyor to inspect the property. The inspection primarily determines the property’s value by comparing similar properties sold in the area. 

Additionally, the mortgage surveyor will try to identify any factors that could affect the property’s value. If such issues are discovered, a mortgage lender may refuse your mortgage application.

What does a mortgage surveyor look for?

A mortgage surveyor looks for several issues including:

  • Flood risks: any history or known risk of flood can affect a property’s value. This could result in a mortgage lender losing money if you default on your mortgage repayments.
  • Ground instability: like flood risks, ground instability could also affect the future value of a property.
  • Structural problems/non-standard construction: visible structural problems are a deterrent to buyers. This means that a mortgage lender won’t risk its money on a structure that might lead to a loss. 
  • Whether the property is run down: if a house is clearly in a poor state of repair, it falls into the same category as a house that has structural problems.
  • Whether the property is located above a restaurant: businesses like restaurants could increase littering, late-night noise, odours and encourage anti-social behaviour. These are factors that could negatively impact future buyers’ appeal. Mortgage lenders may find this risky and thus refuse your mortgage application.

What can you do to avoid a mortgage application refusal?

The first thing you need to do is understand what a mortgage surveyor looks for during a mortgage valuation and why.

Secondly, it might be in your best interest to hire an independent property surveyor before applying for a mortgage.  

The mortgage surveyor looks for factors that might affect a property’s value so that the lender does not lose money. This may indicate that the mortgage surveyor is not looking out for you.

Hiring an independent property surveyor is beneficial in two key ways:

  • You identify factors that might lead to a mortgage application refusal and look for ways to mitigate them. 
  • You identify other factors that might not affect your mortgage application but may cost you and affect your ability to keep up with your monthly mortgage repayments. A good example is house repairs. 

There are times when you might not be able to mitigate some factors that may lead to a mortgage application refusal. It might be best to look for another property in such circumstances. 

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »