Nationwide valuation error (alledgedly!!) can I take action?

robin_banks

My point was/is we've now way of knowing until factors such as type, age, location of property are made clearer. The survey could have highlighted something, though the lender needs to be more specific.

Running_Horse

If Nationwide agreed a valuation and reduced it later then that is bad.

It is also one of the reasons they are one of the few big financial institutions not to have to be rescued by the government, and to actually be making money. It's not sexy, but it works.

RabbitMad

I'd disagree with running horse - the reason NW hasn't needed rescuing is that it can only raise limited funds from the money markets the rest has to come from customers deposits; its part of the legislation that governs being a building society.

I do think the way the OP has described NW's actions sounds very bad. I certainly don't believe it would pass the FSA's TCF rules if the OP is telling us the whole story

brit1234

Sorry but I agree with nationwide. Why should they put their money at risk on a overvalued property. You just have to look at any newspaper to see that developers are not dropping prices but spinning deals to trap people paying the overvalued price. All other property is coming down and the banks are not prepared to lend on over valued newbuilds.

robin_banks

I'm leaning towards you brit, but I do think NW need to explain the 'error' in a lot more depth. I didn't realise it was a newbuild, always over valued and tend to be built badly.

Lynn11

I was talking to my husband who is in the housing industry and he advised me that they have reports on different things that banks are doing - Nationwide are now offering mortgage at repossession rates which is about 60% lower than the house price. This could be reason for the new deal they mention but I would phone to get an explanation. House builders are finding it hard to sell their properties do they may give you a bit extra off the house, but you wil need to ask.

Premier_2

Lynn11 wrote: »

... Nationwide are now offering mortgage at repossession rates which is about 60% lower than the house price. ...

I've no idea on the source of this, but if it's true where can I buy a house for just 60% of its value please?

hethmar

But I dont understand - 5 days before completion - surely your mortgage deal should be done and dusted, signed up, no way out either side since exchange?

dopester

benthebookie wrote: »

I know house prices are dropping, but 30K in a few weeks?

Hilarious. People just can't get it in to their heads.

Nationwide has saved you overpaying by £30K and you are upset about it !

Maybe you'll be even angrier in 6 months time when its valued for mortgage purposes at £60K or more worse off.

Whooppie Doooooo.

People need to get in to the real world and understand that much of the near 300% HPI over the last 11 years is imaginary... fuelled by cheap credit, ever higher lending multiples and a credit booming economy with people spending themselves in to debt.

Take away those things, add huge rises in unemployment and pay-cuts, and where does that leave property prices. Going down in price massively imo.

dopester

Maybe the BoE heavy and sudden 1.5% cut has forced lenders to reappraise valuations, and LTVs - because, in the real world, places like Nationwide still have to make profit on money they lend out, and don't want to lend too much on over-valued assets which are crashing hard in price.