Valuation policy and fees

Valuations

We’re legally obliged to assess the value of a property for mortgage purposes. This may not involve a physical inspection of the property. If the property is a New Build, the valuation report will be uploaded to the document store within NFI Online. For other applications, we’ll only release a copy of the valuation report in exceptional circumstances.

Your clients are advised to get their own report on the condition and value of the property. We would advise a fuller inspection, such as a Home Survey level 2 or 3 report.

Please note that once the valuation has been produced, you can't request a Home Survey report.

If you're unsure whether the property would be suitable security for us, you can complete this Pre-valuation enquiry form.

Property decision at DIP

In some cases, we'll have enough information on the property at DIP to decide we wouldn't be prepared to lend. For example, if the property is in a known flood area. This will show on the DIP results screen.

• If your client decides to purchase a different property, you'll be able to amend the DIP.
• If you want to challenge the property decision, complete the DIP property decline form. To consider this challenge, you'll need to provide evidence/a valid reason for your challenge.

Once we receive the instructed valuation and the application is sent, we'll process the documents within our expected SLAs. 

We need to underwrite some higher risk cases in more detail. To prevent delays for your clients, please see our key information for DIP refer cases.

Valuation reports

Mortgage Valuation Report (MVR) / Further Advance Revaluation Report (FARR)

Where we require a physical valuation, safety is our number one priority. Valuers will need to carry out a detailed safety assessment with the customer before we conduct the valuation. Where a customer isn’t comfortable letting a valuer into their property we’ll place the application on hold. You’ll need to tell us when they’re ready to proceed.

Valuers may carry out an ‘external only’ assessment. They will still complete a safety assessment and the valuer will explain the process to the customer. Where we need more information or require photos of the property, the valuer will request them from the applicant/vendor. If this is necessary, we will provide full support by telephone/email.

We’ll carry out a valuation to ensure the property is suitable for mortgage purposes. It’s important to note:

• Your client won't get a copy of the report.
• The mortgage valuation may not involve a physical inspection or visit to the property. For example, we may use an Automated Valuation Model (AVM) or desktop valuation.
• You must not rely on the report to identify defects in the property. There may be defects that will not be on the report for mortgage lending purposes, but which could be important to your client as the buyer. For their own purposes, your client should consider obtaining either a Home Survey Level 2 Report or a Home Survey Level 3 Report.

Home Surveys

Home Survey Level 2 Report

• A member of Royal Institution of Chartered Surveyors (RICS) will carry out this report.
• The RICS states you should choose this report when you need more extensive information when buying a conventional house, flat or bungalow. This home will need to be built from common building materials and in reasonable condition.
• The focus of the report is assessing the general condition of the main elements of the property. This includes a visual inspection of the building, its grounds and its services (although we won't test the services).
• If it’s safe to do so, we'll inspect concealed areas opened or used by the occupiers. For example roof spaces, basements and cellars.
• The report will provide an assessment of the relative importance of any defects/problems.

Read more about the Level 2 RICS report

Home Survey Level 3 Report

• The RICS states you should choose this report if
• dealing with a large, older or run-down property
• a building that is unusual or altered, or
• if you're planning major works.
• It costs more because it gives detailed information about the structure and fabric of the property.
• The service includes an extensive detailed visual inspection of the building, its services and the grounds. It provides more extensive details than a Level 2 Survey. Although the services aren’t tested, we'll observe them in normal operation. In other words, they're switched on or off and/or operated where the occupier has given permission. And it’s safe to do so.
• The report will describe the form of construction and materials used for different parts of the property. As well as the condition and provide an assessment of the relative importance of any defects/problems. 
• It will describe any known risks of potential or hidden defects in areas not inspected. The report will propose the most probable cause(s) of the defects based on the inspection. It will outline the likely scope of any appropriate remedial work. And explain the likely issues of non-repair. The report will make general suggestions in respect of the priority and likely timescale for necessary work. The surveyor may be able to provide an estimate of costs for identified repairs if agreed in advance.

Read more about the Level 3 RICS report

If your client would like a Home Survey Level 3 Report:

• You or your client can email us at FullBuildingSurvey@Nationwide.co.uk. You should do this as soon as you submit your case. This will need to include your client’s name and mortgage case reference number.
• We’ll email straight back to say we’ve received the request. And that we’ll provide a further update within 48 hours.
• Once we've allocated the MVR, we’ll contact the valuation firm to confirm your client would like a Home Survey Level 3 Report.
• We’ll email you or your client (depending on who emailed us for the Home Survey Level 3 Report request) to confirm the valuation’s been placed. We'll then contact your client by the valuation firm regarding their Home Survey Level 3 Report.
• Your client will need to pay the Home Survey Level 3 Report fee direct to the valuation firm. Your client can approach a different company to get a Home Survey Level 3 Report quote.
• You're not required to enter any notes regarding the Home Survey Level 3 Report on NFI Online.

Valuation fees

We’re legally obliged to assess the value of a property for mortgage purposes. This may not involve a physical inspection of the property. If the property is a New Build, the valuation report will be uploaded to the document store within NFI Online. For other applications, we’ll only release a copy of the valuation report in exceptional circumstances.

Your clients are advised to get their own report on the condition and value of the property. We would advise a fuller inspection, such as a Home Survey Level 2 Report or a Home Survey Level 3 Report. 

All products come with a free Level 1 Mortgage Valuation. Costs vary for each level of survey based on the property value. Read our table below.

Valuation appeals

If you wish to appeal the valuation figure, it’s important that it fits our criteria. We'll need the following information to consider your appeal. We'll reject appeals which do not provide the following:

• You'll need to provide details of at least two comparable properties.
  • They must be of similar type, style, size and location to the subject property.
  • been sold/rented within the last six months.
• A summary/additional comparable explaining why you're appealing the valuation based on the information. You need to provide comparable evidence.
• For New Build properties, we require three comparable sales:
• one from the same site
• one from a similar local New Build site
• and a Non New Build property in the local area

Important information:

• We'll reject appeals received with missing information, or if they don’t meet the necessary requirements.
• You can only appeal valuations within 10 working days of you or your client being made aware of the valuation outcome.
• We’ll respond to the appeal within 7 working days. The response will be the final outcome. You will not be able to appeal the valuation again.

It’s important that you review the above criteria first before contacting us. Once you have all the relevant information to hand you can contact broker support. They will send you the Valuations Appeal form, which should be submitted to valuation.appeals@nationwide.co.uk. 

You can talk to our NFI Online technical support team on Broker Chat to confirm the valuation figure we hold for the property.

Switcher valuation appeals

If you or your client wish to appeal the property valuation figure returned by NFI Online as part of a rate switch application, please complete the Rate Switch Valuation Appeal Form. You'll then need to email this to switchervaluationappeals@nationwide.co.uk.

Post Valuation queries reports

Valuers may request specialist reports within their valuation which are:

• designed to highlight defects
• and/or to assist them in obtaining additional information upon which to base their valuation.

The valuer will advise which reports they need. A surveyor will then need to complete all the requested reports. Once completed, you'll need to upload them to the case, so we can refer them back to the valuer for their consideration. We'll only accept reports from qualified firms and professions, and they must show a proper detailed inspection has been made. The initial report might certify that the property is not a suitable security. If this happens we may consider it following an independent review by a specialist.

The following are examples of specialist reports that we might request:

Additional borrowing valuation

You can input an estimated value of your client's property on the loan requirements screen.

We’ll attempt to value the property using either:

• an Automated Valuation Model
• or a Further Advance Revaluation Report (which'll involve a physical inspection of the property).

If you're completing a rate switch application at the same time as an additional borrowing application, you can input an estimated property value in the loan requirements screen of the additional borrowing application. This will not change the value we hold for the rate switch application.

Please follow the valuation appeal process below if you wish to appeal the valuation for:

• a rate switch application
• or following a physical inspection.

See our additional borrowing page.

Scottish Valuation Instructions

Home Reports in Scotland - Single Surveys

All vendors of a residential property in Scotland must provide potential purchasers with a copy of a Home Report Pack. This will contain:

• a Single Survey
• an Energy Report
• a Property Questionnaire
• and a generic Mortgage Valuation report.

If you're unsure whether the property would be suitable security for us, you can complete a Pre-valuation enquiry form.

Transcriptions

The only transcriptions accepted are purchase mortgages arranged under the Scottish Home Report (single survey) process. We won't accept transcriptions for remortgage applications and those relating to New Build properties.

For acceptance of these transcriptions the following points apply:

• The valuer providing the transcription must be the person who prepared the original Home Report or inspected the new property.
• The firm employing the valuer must be on the Nationwide panel.
• The valuation figure can't be older than 90 days from the date of inspection.
• Where the valuation figure is a result of a 'refresh' of the original Home Report, you must make sure it's based on an internal/external inspection that has taken place within the last 90 days.

The transcript will only contain the same information and valuation figure as the Single Survey. A valuer may, at the request of the seller, refresh the report which could result in changes, including the valuation figure. To refresh a report the valuer must re-inspect the property.

Nationwide will instruct valuers to forward transcripts only if they have inspected (or re-inspected) the property within 3 months from receipt of our instructions.

Instructing valuation

• Where a Single Survey has been prepared by a panel valuer, you need to request a transcription. You can do this via NFI Online in the usual way.
• Countrywide surveyors will reject where they:
• receive the transcript requests, but the valuer isn't on our panel.
• receive the instruction request but can't issue a transcript.

Where you can't provide a transcription, we'll let you know. We'll then arrange a standard valuation.

Exempt properties

You'll be exempt from the requirement to have a Home Report Pack or single survey if you plan to occupy the newly converted properties as residential units for the first time.

Scottish Valuation Instructions

To read more about our Scottish criteria, see our dedicated page.

Additional information

We offer free standard valuations on all purchase, remortgage and additional borrowing (further advance) products.

Remortgage applications

• When your client transfers their mortgage to us from another lender, we check the value of the property. To minimise costs for your client we pay the fee for a standard mortgage valuation.

Equity Share, Shared Ownership and Restricted Resale Price applications

• We'll base the valuation fee on the full open market value of the property.