A bank valuation certificate is the lender’s assessment of a property’s market value, used to decide how much it will lend against it. The mortgage is based on this valuation, not simply on the agreed purchase price.
Where you’ll see it
You’ll see a bank valuation after a buyer agrees a price and applies for a mortgage. The bank instructs a valuer, who inspects and values the property; the certificate then feeds into the loan-to-value calculation and the final offer.
Why it matters
If the bank’s valuation comes in below the agreed price, the buyer must cover the shortfall in cash, because the loan is sized to the valuation. Understanding this avoids a nasty gap between what the buyer agreed to pay and what the bank will fund.
What it is not
A bank valuation certificate is not the same as the DLD valuation used for fees, nor a snagging or condition inspection. It is the lender’s view of value for lending purposes.
Example
A buyer agrees a price, but the bank valuation comes in slightly lower; the bank lends against the valuation, so the buyer increases their down payment to bridge the difference.
Connected documents and parties
Valuation certificate, mortgage offer; borrower, bank, valuer.
Going deeper: related reading: loan to value and DLD valuation.
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Last reviewed: June 2026