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Waiting for the outcome of a valuation report can be worrying, as it plays a big role in deciding the type of mortgage you can get There can be cases where a surveyor delivers a zero-mortgage valuation, which can cause added confusion and concern.
We explain more about these types of valuations, how it can impact your application and what you can do to potentially resolve it.
A zero valuation, also known as a ‘nil’ valuation, is when a lender decides that they cannot lend money on a property, which can be due to a variety of reasons, This doesn’t necessarily mean that your property doesn’t have any value on the property market, only that a specific lender is unwilling to grant a mortgage.
There may be steps you can take to resolve a zero-mortgage valuation, depending on the reasons it was given. If you have received a zero-valuation on your property, speak to a member of the Willows team who can advise you on your options.
In most cases, zero valuation mortgages tend to be caused by:
A property in poor or unsafe condition can be the reason for a nil valuation. Examples include:
Certain legal complications can result in a zero valuation. Examples include:
If the lender is unable to verify ownership of the land or property,
Example: We’ve seen cases where a property was built on land with Possessory Title, meaning the owner couldn’t produce documentary proof (e.g. lost deeds). If no one challenges ownership within 12 years, the title can be upgraded to Absolute Title—the most secure form. However, many lenders may refuse to lend during the 12-year window.
Sometimes the problem is not with the property, but with the lender’s specific criteria or concerns over construction type. For example:
Once you’ve received the valuation report and have reviewed the surveyors’ comments, take time to consider your next steps.
Some lenders will allow you to lodge an appeal against a nil valuation. Alternatively, they may accept an independent valuation from a RICS-registered surveyor.
There have been instances where a valuation from a second surveyor has resulted in a more favourable outcome for the applicant, so this is well worth considering.
Each lender has its own criteria, so it may be the case that applying elsewhere could have a different outcome.
If the property falls outside one lender’s criteria, a specialist lender may be more accommodating.
Before you make a second application, it’s important to consider your credit history. Making too many credit applications in a short space of time can have a negative impact on your credit score, and if you have been turned down multiple times, this could be seen as a red flag by other lenders.
Bridging lenders can offer more flexibility and may be able to lend on properties that have been given a zero-mortgage valuation by a mainstream bank. This is often true where basic works (like installing a kitchen or bathroom) are required.
However, it is important to be aware that bridging loans often require more equity or a large deposit, and you’ll also need additional funds to complete the necessary work.
If you’re new to bridging loans and want to find out if they can work for you, visit our Bridging Finance page to learn more. And, of course, you can give us a call and our team will be more than happy to help.
If your property suffers from major structural issues, you may find it more of a challenge to get a mortgage.
However, a nil mortgage valuation does not always spell the end of the road. By understanding the underlying reasons and exploring your options, it may still be possible to secure finance or appeal the decision.
These are the types of scenarios we specialise in at Willows, so to find out more about how we can help, speak with a member of our team today by calling 01656 766 158.
If you have a question – we’d be happy to talk to you – simply call us…
(Mon-Fri 9am-8pm, Sat 10am-1pm)
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At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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