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Help recovering funds from Chelsea

monkeychild
monkeychild Posts: 22 Forumite
in Mortgages & endowments
Hi,
To cut a long story short. We got offered a Chelsea mortgage and all was going swimmingly until 5 weeks down the line, the senior underwriter said unless we come up with 25% deposit we don't get the mortgage!!! This was due to us not being in the house permanently!! (going to be a weekend base) They had already taken £285 off us for a valuation, but this is nul and void now. I said I want a refund and they have only sent a cheque for £160!!! Now I do not think it is right they should have the other £125 as they pulled out at the last minute after moving the goal posts. Where do I stand legally with regards to getting the rest of my money back??
Regards
Richie
«1

Comments

  • dunstonh
    dunstonh Posts: 121,155 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Chelsea are quite correct in not paying it back. It states in their terms and conditions:

    The valuation fee, which will vary depending on the value of the property, will include a non-refundable administration fee of £125 for dealing with your mortgage application. This fee is payable with your mortgage application.

    One assumes you read the documents before you signed and posted them?

    If you used a mortgage adviser, you could reclaim it from them as they are there to stop this sort of thing from happening. (i.e. they check you meet criteria before sending applications in and incurring costs).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • monkeychild
    monkeychild Posts: 22 Forumite
    Yes I did read them, but not having a copy of it and last seeing them over 2 months ago!! You tend not to remember this stuff!!
    We had met the criteria and signed our lives away, but the senior underwriter decided to pull the plug right at the last minute!! Totally ridiculous and unreasonable if you ask me.
  • HelpWhereIcan
    HelpWhereIcan Posts: 1,343 Forumite
    Unfortunately, I think that you may find that the goal posts have not moved and that the Chelsea would have always restricted the mortgage to 75% for a second home. The 75% maximum has laways been there AFAIK

    Did you take advice from a mortgage broker or Chelsea Branch adviser or did you submit the application on a non-advised basis?

    If you did take advice, you may have a case against the adviser as dunstonh says. What evidence do you have that the adviser (if a Chelsea one) was aware of your plans for the property were?

    I think the approach of addressing this with your adviser will be the most productive
    I am an IFA (and boss o' t'swings idst)
    You should note that this site doesn't check my status as an IFA, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • monkeychild
    monkeychild Posts: 22 Forumite
    This is going to be our first home not second. I am in the forces so I live in rented accomodation with my wife. It was made aware to the chelsea from the start what we where doing regarding this purchase, and our financial advisor also knew this and told them time after time. I am seriously miffed as it is the Chelsea's fault as they obviously didn't pay attention to our case right from the start!!
  • dunstonh
    dunstonh Posts: 121,155 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Speak with your adviser.

    Chelsea havent suddenly changed anything. Your representative is the adviser and that is who you should be communicating with and unfortunatly, it is the adviser who is liable for the advice given. Not Chelsea.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • monkeychild
    monkeychild Posts: 22 Forumite
    It was the Chelsea who came in at the last minute. As far as my financial guy was aware everything was going fine, until 5 weeks later Chelsea just came out the blue and said stump up more 15% more deposit or we will not lend to you!!!!! This came from the senior underwriters (nice to see they are quick off the mark!!!) If that's not moving the goal posts I don't know what is. I mean saying this 5 weeks down the line is shocking behaviour as we could have just gone to a different lender (like we have done now!) who was prepared to accept our circumstances. I do not see why I should be financially penalised due to them coming in with clauses so late in the game.
  • dunstonh
    dunstonh Posts: 121,155 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It doesnt make any difference. Your contact is the adviser. If the adviser has it covered by recording his communications to Chelsea where they were told about this before application was submitted then it shouldnt be a problem and Chelsea would almost certainly refund it. If the adviser has no documentary evidence of raising this point, then the adviser is the one that you should be looking to. Either way you need to communicate with the adviser.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • monkeychild
    monkeychild Posts: 22 Forumite
    Cheers muchly.
  • monkeychild
    monkeychild Posts: 22 Forumite
    Fees_Free_Mortgage_Advice wrote: »
    I'd recommend you seek fees free mortgage advice by a broker on here.


    Have a mortgage sorted now ta. It was the gits at chelsea not refunding my cash that was annoying me :mad:
  • dunstonh
    dunstonh Posts: 121,155 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Fees_Free_Mortgage_Advice wrote: »
    I'd recommend you seek fees free mortgage advice by a broker on here.

    This website isnt for touting and you are in breach of the board rules regarding mortgage advisers.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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