Shared Ownership Mortgage mis-sold?!! Financial Ombudsman case??

opinions4u

The mortgage was originally taken out via a broker. If the mortgage is unsuitable, the broker is where the complaint has to be addressed.

The additional lending was declined, from what I can understand, by the Halifax branch, in accordance with their lending criteria. You cannot force them to change those criteria.

Your only gripe with the branch is the valuation fee. My view is that they shouldn't have instructed the valuer when their underwriting rules say that they can't lend anyway.

Ask for your fee back.

LondonSW5

Thanks for your comments.
Has anyone heard of a 'Deed of Postponement'?

The Housing Association has mentioned that to me and the Halifax have suggested that i try to get one from the Housing Association to sort this mess out.

What is that? Any implications of this? I have absolutely no idea what that is and how it works?

LondonSW5

UK007BullDog wrote: »

Are you for real? I dont believe that you did not know.

You should have known that with shared ownership you are locked in and cannot borrow extra. You think you might have raised your value by renovating but the property prices are falling so you might have managed to keep the value steady.

The Housing association would have also sent you docs explaining how things work.

No one explained that to me. I would not proceed if i had known. Why should i have known? Is not in any literature i have around my mortgage. Is not in any terms and conditions i have read beforehand. Perhaps a broker or mortgage adviser would have known , but why would i as someone new to this?
The Housing association sent information regarding the scheme ..a pilot scheme..and how it works. There was no information from them regarding what i could use additional borrowings for. Trust me..i am not stupid. I read everything before i entered this and made my plans.
And to be clear. In Feb 2008 the property was 209k. In August 2008 (6 months later) the property is 300k..and this is during a time the market is in decline .Is safe to ascertain that ALL the uplift is as a result if my renovations which have to be discarded by the housing association. So i think i have plenty of equity.?
Do i sound like a guy who doesn't do his homework carefully?

shed35

The reason why it is not written in the terms and conditions is because Halifax don't catergorise Social Homebuy/Shared ownership any different to those who have normal mortgages. i.e those with just 1 charge on the property and therefore no procedures is written.

Halifax always do this. They don't look closely at the paperwork until the funds are just about to released and withdraw their offer.

Halifax did this to me a when I brought a house through a homebuy scheme. They said everything was fine offered me a mortgage and everything was fine until we exchanged contracts. Halifax being Halifax looked closely at my application and withdrew their offer leaving me moving house without a mortgage.

I was very stressed but through perserverance and a good solicitor it was sorted.

I did complain to the FSA and won. You should do the same. I understand that schemes for social homebuy/shared ownership are all different but Halifax should do their research before agreeing to lend money. Saves alot of heartache.

Good luck and please let me know what happens.

LondonSW5

Thanks SHED35!!

Sorry to hear someone else had problems...but is also a relief to hear that someone else has been through something similar with Halifax! I was getting tired of hearing on this forum that "i should have known" etc etc.

I will definitely be taking this to the Ombudsman...but only after the dust has finally settled on this one. Luckily for me i have some wealthy friends who are helping me to coast along and meet my financial commitments every month until this is sorted out. If it were not for my friends i would be in a terrible state by now....but no one else should have to go through this again.

A few heads will definitely be rolling over this......i have already taken it to local government level!! They are keeping an eye on what has happened here.

Conrad

LondonSW5 wrote: »

Do i sound like a guy who doesn't do his homework carefully?

You sound like the sort of client I do not deal with.

1) I bet you didn't pay a broker fee, but instead went for the cheapest option - cheap means people do not have the time or inclanation to go the extra mile (although they may not even realise this)

2) You said there was no mention of the refinance options in the mortgage papers,or H A documents - did that not ring alarm bells, to someone as thorough as you?

HALIFAX - I would say you have a pretty sound case against them and should be entitled to a valuation refund. For a start the course of action was not suitable and suitability is a corner stone of regulation.

Bank advisers often can be very poor when it comes to personal tailored and careful advice

Go on Martin, keep on telling everyone they should aim for a fee free broker.

:T

Conrad

Another thing - your property is DEFO not worth anything like you might think.

Almost every client seems to think thier own home is worth more than it is. On average Im finding valuations are comming in 10 - 30% lower than owners expect.
I bet you £20 your valuation is £40k ott

tinkerbell84

How did you pay for the major renovations, OP?

LondonSW5

Conrad wrote: »

Another thing - your property is DEFO not worth anything like you might think.

Almost every client seems to think thier own home is worth more than it is. On average Im finding valuations are comming in 10 - 30% lower than owners expect.
I bet you £20 your valuation is £40k ott

My flat was valued by an independent rigs valuer in Feb 2008 at 209K. Was valued by an independent rigs valuer in August 2008 at 300K.....?? Your point is?

Additionally since i am purchasing more shares in the flat...it will be valued again. One pre renovation..one post renovation. Is great news for me if prices have dropped. I really hope they have. The lower the better. I can purchase more shares much cheaper than i could in February. This is because when buying more shares the housing association base this on the lower value ( i.e without any renovations uplift)

I hope you are right. It just gives me more and more equity! so..your point is?

LondonSW5

tinkerbell84 wrote: »

How did you pay for the major renovations, OP?

Read the whole thread!