1st time buyer - feel misled on deal

GDB2222

I almost get the feeling that the builders make more from the reservation fees of people who do not go ahead than from selling houses. I'm astonished that people pay £500-1000 to reserve a patch of mud that hasn't been built on yet.

Clearly, as a gesture of goodwill, £50 would do. MSE'ers really ought to insist on a low reservation fee. Let's start a campaign to change things!

guppy

poppy10 wrote: »

So Barratts are basically saying they know the property isn't worth what they are charging, but they are confident that they can find some mug punter to pay the overinflated price.

The last few years can't have done anything to dent their confidence in this respect!

sassy88

i think your right they must make a packet out of stolen deposits!! I know from the sales office that they gave the couple on the next plot theirs back, i guess they had a bigger growl than me!!
I am still making regular phone calls but it seems now that they are reluctant to take my calls. Their tactics are just bullying! I shall be advising everyone i know to avoid them!

Woody's_Girl

Jeez, we're going through similar issues with Barratts. My H negotiated a really good deal but we had our own Mortgage Advisor already. The sales lady is really pushing their advisor saying they know how new builds work and it'd save us a lot of hassle. We've paid a £500 deposit and have agreed exchange within 28 days but I can't see that happening seeing as we're a week in and still haven't applied for the mortgage. Our mortgage advisor says he can't apply for a mortgage because Barratts have worded their paperwork to look like they've got the asking price rather than what we've paid. He says the lenders won't do it and basically Barratts are inflating their figures. It's a nightmare and I have no idea if we'll ever get the house we really want. It's looking doubtful but better we lose £500 now than a lot more later on. After reading all this i'm sticking with our own advisor.

sri

Just an update to you all on my situation - I wrote to Barratt a strongly worded letter and demanded that they refund my deposit. I got an immediate response from them stating that the amount is non-refundable as per the terms of the reservation agreement so effectively they meant my £1000 is lost. However, they have mentioned that I could choose to proceed with my purchase or they would be happy to hold this £1000 for any other Barratt new build I buy in the future.

I spoke to the Property ombudsman unfortunately they DO NOT deal with new builds (what a shame). When I read their letter again, Barratt sound so confident that it looks they are well vetted in profiting on such reservation deposits. I am looking at options of going to a small claims court but some of whom I spoke to mention that the builder might bring in a heavyweight solicitor to fight their case. I am still giving it a thought if I should proceed.

I am not sure if I should request my credit card company to put the payment in dispute; any advice from anybody will be much appreciated.

Milliewilly

Its certainly worth a call to your Credit Card Co to see what they say. Can you not complain to the FSA or similar ?

GDB2222

It's not something covered by the FSA.

You can put a dispute in to your credit card company, and that may just possibly persuade Barratt to compromise to some extent. However, I wouldn't expect you to win, ie the credit card company will eventually come down in Barratt's favour. You paid Barratt £1000 to reserve a plot for you for a period of time. They did that, so they are entitled to their money.

FraudBuster

Write to your MP's.

swordsman2007

Do not use New Homes Mortgage Helpline - for all the reasons already stated and more.

By the way is it right that they should provide updates on your mortgage application directly to the builder?