Down-valuation calculator
New-build surveyors often value below the agreed price. See exactly what a shortfall does to the loan the lender will actually support at your LTV, and whether it pushes you across a standard LTV cap band.
This is an information tool, not advice: it doesn't give a recommendation, a decision in principle, or a guarantee any lender will lend to you.
Worked example: £320,000 house, 10% deposit, valuation 5% short
Agreed price £320,000, £32,000 deposit, surveyor values the completed home at 5% below the agreed price.
The valuation comes in at £304,000. Keeping the same 90% LTV against that lower figure, the lender will only support £273,600 — £14,400 less than the £288,000originally agreed, which you'd need to find in extra cash, a lower price, or a renegotiation with the developer.
Change the inputs below to model your own numbers.
A shortfall large enough to cross an LTV band
£300,000 house, 10% deposit (£30,000), valuation comes in 12% below the agreed price.
Keeping the loan you agreed against the lower valuation would mean borrowing at 102.3% LTV — crossing the 95%cap most new-build lenders won't go above. In practice you'd need an extra £32,400 to keep the loan at 90% LTV against the new, lower valuation.
Change the inputs below to model your own numbers.
Between £50,000 and £5,000,000.
FAQ
What actually happens if my new-build valuation comes in low?
Your lender lends against the LOWER of the agreed price and the surveyor's valuation, not the price you agreed with the developer. If they come in below your price, the lender's maximum loan shrinks to match — you either find the difference in cash, renegotiate the price with the developer, ask the lender to reconsider (rare), or in the worst case the purchase falls through.
Can I challenge a down-valuation?
You can ask your lender for a formal valuation review, ideally backed by comparable evidence (recent sales of similar new-build or second-hand homes nearby) — see the new-build premium checker for how to check your price against local comparables before you exchange. Success isn't guaranteed and most reviews confirm the original figure.