Britannia - false advertising? HELP!

Trollfever

Britannia - false advertising?

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The ASA is here to make sure all advertising, wherever it appears, meets the high standards laid down in the advertising codes.

http://www.asa.org.uk/asa/

jerome2094

Now debating what constitutes 'good condition'! Very frustrating as they cannot give me any set criteria on what they are basing their decision of lowering the LTV from 90% to 85%.

On asking whether calls where recorded the team leader we were talking to very prompty wanted to refer us elsewhere and told us that she isn't even trained for sales!

Now waiting for them to call back!?!

Conrad

jerome, a lender always reserves the right to apply conditions as they go, particularly in relation to property type.

Reading between the lines there is more to this than just a down valuation. They must judge the property condition and / or location not to be prime. 90% lending is heavily rationed as I keep on warning everytime I see these threads on 90% borrowing (a new one here today for example).

I personaly think prices have just about bottomed out but there are many risk factors out there, not least of which is rising unemployment. As such lenders are concerned about falling prices, and of course in the event of repossession they will incurr heavy costs so a 10% equity margin is very slim indeed. Typically borrowers will wreck the property which could add thousands more in costs, plus baliffs, police, security, locksmiths, non paid interest, court costs etc etc.

Your complaint might suceed, but it's touch and go.

jerome2094

Started complaints procedure and contacted the Financial Ombudsman.

Also drawn Britannia's attention to one error and one omission in the valuation which they had also noticed but not followed up on! Supposedly it is now a priority for them.

Team leader I spoke to agreed that if the £2000 works were carried out the property would be in 'perfect condition' but then could not explain why we could not have a 90% LTV with a £2000 retention.:cool:

In relation to the property it was purchased by the vendors in 2005 for £180,000 and they have substantially renovated it and are only selling at the price we have agreed (£193,000) as they have divorced and are desperate to move on so we know that we are getting an excellent buy.

Mrs_Bumble

Well good luck! Hope it works out for you:)

Financial Ombudsman can't do anything until you complete the Britannia complaints cycle.

jerome2094

Thanks. They are sending a letter on our behalf today with the slightest hope that it might carry some weight with them.

Dan_1976

The Lender will hold the right to refuse credit/loans for whatever readon. Small print will say this or refer to the terms and conditions etc etc.

Your issue is not down to advertising but lending policy etc. If you never do the work the property will/may be worth less meaning you are getting more than 90%. Makes sense to me.

Cant see what you are going to get out of complaining?

Mrs_Bumble

Dan_1976 wrote: »

The Lender will hold the right to refuse credit/loans for whatever readon. Small print will say this or refer to the terms and conditions etc etc.

Your issue is not down to advertising but lending policy etc. If you never do the work the property will/may be worth less meaning you are getting more than 90%. Makes sense to me.

Cant see what you are going to get out of complaining?

If you don't ask you don't get!

Britannia may well stick to their guns, but if they look at it and mistakes have been made then they just might make things right.

jerome2094

We are only asking for 90% of the current valuation (not the improved valuation) and the lending criteria simply states 'good condition'. As the property requires work that is only 1% of the current value I would be inclined to believe that it constitues good condition.

pikeachu

I've just had exactly the same problem. We were offered 90% ltv by britannia, the valuation was done and there was damp so they've put a retainer of £1750 on it until the work is done.

I spoke to them on monday and they told me this and said that the offer would go out in the post that evening, which was great, we negotiated with the vendors to pay for the work for us as we don't have that much spare.

Then I get a call yesterday (tuesday) to say that actually they will only lend us 85%. We don't have a spare £6250 to pay for this and nor does any of our family to lend to us. If we did, we'd have ask for 85%ltv in the first place. Which means that we'll have to pull out and loose about £1000 in non-refundable mortgage fees and wasted solicitors fees.

I'd be grateful to find out how the OP got on with arguing against this. Is it worth it or do we just cut our losses, accept that we've lost money and wasted time and start all over again with another provider?

Many thanks.