Mortgage brokers warn of “judge, jury and executioner” surveyors as down valuations surge

MORTGAGE brokers warning of “judge, jury and executioner” surveyors and wild inconsistencies as down valuations surge.

Landlords and brokers have reported an unprecedented wave of down valuations, particularly in the buy-to-let and remortgage markets. 

Properties are being marked down by as much as 15–20%, with some borrowers forced into higher loan-to-value brackets or left with collapsed deals.

Surveyors say they are protecting lenders in a riskier market, but brokers argue the sheer scale, inconsistency and lack of appeal rights point to a deeper shift.

The frustration is boiling over, with one broker describing valuers as “judge, jury and executioner” and another saying the difference between a deal and collapse often comes down to “what a surveyor had for breakfast that morning.”

Michelle Lawson, Director at Fareham-based Lawson Financial, said she had never seen this amount of down valuations.

She added: “This is starting to get quite prolific and almost expected now — bizarrely it only seems to be affecting the buy-to-let market. I have never seen this amount of down valuations and disparity between valuer opinions. Borrowers are the ones also affected as not only can they lose application and valuation fees to change lender, they could end up with a higher loan-to-value bracket and/or higher interest rate — all driven by one person’s opinion on a certain day. Valuer comments have been strong on ‘lack of demand’ or ‘no market’ — mind-boggling when these comments are made in big cities like London.”

Mark Richardson, Partner at BB&J Commercial, argued that many so-called down valuations are simply reality checks.

He said: “The term ‘down valuations’ is misleading. Surveyors provide evidence-based market values, acting for the lender, not the borrower or broker. The real issue is borrowers and brokers overstating values using unrealistic figures. This reflects a wider problem where investors build models on extracting finance, assuming values will rise through minor works or HMOs, expecting surveyors to fall in line. To illustrate: I was recently asked to value a property with an ‘estimated’ value of £500,000 which sold at auction for £300,000 only months earlier. In broker terms, is that a ‘down valuation’? I’d call it reality.”

But Craig Fish, Director at London-based Lodestone Mortgages, disagreed, saying valuers are acting as judge, jury and executioner.

He continued: “Once upon a time valuers simply gave their opinion, flagging issues only when absolutely necessary. Now, they seem to be judge, jury and executioner, pulling deals apart with little room to challenge decisions, even when they appear wildly off the mark. Personally, I haven’t seen down valuations at 50%, but where I have, it’s been on buy-to-let cases, which is telling. It points to lenders and valuers taking a much harsher line on investment property, perhaps reflecting concerns about rental yields and market risk.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said consistency has collapsed.

He said: “One of my landlords has had a difference of over £40k on two identical flats in the same converted house, by two surveyors for the same lender. The second surveyor spent no longer than 6 minutes at the property, dropped the value, and requested items that don’t even apply to this kind of property. The quality of reporting has fallen, the consistency is deteriorating, and it’s clear surveyors have now become the underwriter for lenders.”

Rohit Kohli, Director at Romsey-based The Mortgage Stop, said borrowers are being left out of pocket.

He continued: “Down valuations partly reflect the self-inflicted uncertainty this government has created, but they don’t always match what’s happening on the ground. Demand remains, yet we’re seeing valuations come in 5–15% below recent comparable sales. Too often valuers rush inspections and make inconsistent calls that borrowers have no pathway to challenge. The result is buyers left out of pocket, forced to switch lenders, and paying higher rates through no fault of their own.”

Pete Mugleston, Managing Director at onlinemortgageadvisor.co.uk, said properties bought during the boom are being hit hardest.

He added: “The eye-watering down valuations on some buy-to-lets often come from properties bought in 2020–21 when yields looked strong with interest rates near 0%. Now rates are closer to 5–6%, those same properties generate far less profit, and buy-to-let is valued on rental yield and affordability rather than just bricks and mortar.”

Aaron Strutt, Product and Communications Director at Trinity Financial, said clients are frustrated by the wild discrepancies.

He said: “Our brokers and clients have been particularly frustrated by some of the recent down valuations we have seen, especially when they replace the case with a rival lender and a different valuer says it is worth significantly more. Many property valuers do not want to make a mistake, and they would rather provide a lower valuation if they have any doubt or a lack of comparable properties in the area.”

Ken James, Director at Contractor Mortgage Services, said down valuations add another layer of stress for borrowers.

He continued: “One word that sends shivers down a broker’s spine is ‘down valuation’. This adds another layer of stress with rates rising and now with the increase of down valuations the property you thought was worth £300,000 is suddenly being called in at £250,000. Cue a frantic reshuffling of deposits, renegotiations with sellers, or the heartbreaking collapse of a deal. Surveyors are taking a cautious approach, but in today’s climate that means erring on the side of caution — sometimes it feels like what a property is worth depends on what a surveyor had for breakfast that morning.”