You have agreed the price, started planning where the sofa will go and then the lender values the property at less than you offered.

It is a nasty shock. But it is not an automatic instruction to walk away.

A lower mortgage valuation usually leaves you with three choices: ask the seller to reduce the price, find more money yourself or stop the purchase.

 Before choosing one, check what the lender's figure actually changes, get a proper view of the property's condition and ask how close you are to exchanging contracts, the point when the purchase becomes legally binding.

Start with the numbers, not the panic

A mortgage valuation is carried out for the lender.

It checks whether the property provides enough value for the lender to rely on if the loan is not repaid and it has to recover its money from the property. It is not a full survey of the building.

The Royal Institution of Chartered Surveyors (RICS), the professional body for surveyors, says a lender's valuation may not pick up defects that could cost a buyer thousands of pounds.

So a lower figure does not automatically mean the roof is failing, the damp is serious or the house is hiding a disaster.

 It may simply mean the valuer cannot support the agreed price from the available evidence.

The first job is to get the lender's written valuation outcome and compare it with the formal mortgage offer.

 Ask a mortgage adviser authorised to give advice under UK financial rules to show you:

- the revised mortgage amount

- the loan-to-value band: the lender's category for how much you borrow as a percentage of its property valuation

- the interest rate and monthly payment

- the extra cash needed from you

- any change to the mortgage offer or timescale

The size of the gap is only part of the story.

A smaller shortfall can still push the mortgage into a less favourable loan-to-value bracket, leaving you with a larger deposit and a higher rate.

 Do not judge the deal from the headline figure alone.

Can the seller be asked to reduce the price?

Yes. Renegotiating is often the first conversation to have, particularly if the valuation gives you a clear reason to question the agreed price.

The seller might accept the lower figure, agree to split the difference or refuse to move.

They may believe another buyer will pay the original price. There is no guaranteed outcome.

MoneyHelper says a buyer can review the valuation, confirm the purchase, renegotiate or withdraw.

Your conveyancer, the solicitor or licensed specialist handling the property's legal transfer, can explain the legal position and tell you what happens if you pull out at this stage.

An accepted offer is not the same as having exchanged contracts, but that does not mean leaving is cost-free.

You may already have paid for searches, checks of records about the property and surrounding area, a survey of the building's condition, or legal work.

Those costs should not push you into taking on a mortgage that no longer fits your budget.

Money spent so far is gone.

The bigger decision is the cost of carrying the property after completion, when the purchase money is transferred and you take ownership.

What if you can find the extra cash?

Using savings, receiving a permitted family gift or borrowing less could keep the purchase alive.

It could also leave you short of money for moving costs, repairs and the first expensive surprise that tends to arrive after the keys do.

Work out what would remain in your emergency fund after completion, when the purchase money is transferred and you take ownership.

 If a family member is helping, tell the lender and conveyancer. Lenders have rules about gifted deposits and the source of funds.

Be very careful about covering the gap with a credit card or personal loan.

 A second monthly payment can look manageable on its own and become uncomfortable when added to the mortgage, council tax, energy bills, insurance and transport.

A regulated adviser can compare the full cost instead of looking only at the deposit shortfall.

Do not confuse a valuation with a survey

If you are worried about the state of the property, arrange an independent RICS Home Survey at the level that fits the building and your concerns.

 It will not automatically make the lender increase its valuation, but it can tell you far more about condition.

That gives you two separate pieces of information:

- the lender's valuation: does the property support the loan?

- the survey: what condition is the building in, and what repairs may be ahead?

You need both questions answered before putting more money into the deal.

What does this mean in Peterborough?

The Office for National Statistics (ONS) puts the provisional average Peterborough house price at £238,000 for June 2026, with the average for mortgage buyers at £241,000.

Those figures provide a broad view of the market.

 They do not prove that a particular terrace, flat or family home is worth the agreed price.

A city-wide average cannot settle a disagreement over one property.

The condition, size, location, recent comparable sales and strength of the local market all feed into a valuation.

Treat the ONS figures as background, not as ammunition for either side of the negotiation.

Peterborough buyers can also use local professional help at this point.

Jolliffe Daking provides RICS Homebuyer reports, valuations and mortgage valuations in Peterborough and surrounding areas.

Local conveyancing firms can explain the contract position, while a mortgage adviser can test alternative lending and the effect of the lower figure.

Check a financial firm or adviser through the Financial Conduct Authority (FCA) Firm Checker or Financial Services Register, which show firms' permissions to provide financial services before relying on its advice.

A down valuation means the lender values the property below the agreed price.

It does not explain every possible problem with the home.

Get the written figure, check the mortgage offer, investigate the property separately and ask the seller to share the problem before finding more cash.

If you are facing one in Peterborough, ask a mortgage adviser or conveyancer to check the valuation, loan-to-value position, mortgage offer and exchange deadline with you.

Those four details should show which route is affordable: renegotiate, bring in more money or walk away.

Have you faced a Peterborough down valuation?

Tell us which figure or deadline changed the decision, and your experience could help shape a follow-up article.

Quick Next Step

Check the revised loan and cash gap, ask about renegotiating and investigate the building's condition separately. The right choice depends on affordability and how far the legal purchase has progressed.