Valuation Fee lost

Maria77

Hello, I recently applied via a Mortgage Advisor (who gets a commission once mortgage is granted) for 2 separate Buy to Let Mortgages with The Mortgage Works (part of Nationwide) to release funds out of two properties I own(ed) outright and rent out. I have had the same tenants in both properties for almost a year and a half, with no problems.

One BTL mortgage went through no problem, although was valued for slightly less than expected.

The other BTL mortgage, a 70% LTV, on an end terrace house worth around £95,000 and rented out for £450pcm since April 08, was declined AFTER valuation.

I was charged upfront £365 by The Mortgage Works to have the valuation done. All should have been done through the Mortgage Advisor, but for some reason they contacted me when I was on holiday as they were struggling to get a contact to have access to the property. So I also spent money calling them back from abroad and calling the estate agency dealing with the tenants from my mobile (and generally worrying about it).

I also was later in contact by email with someone from the valuation team at Nationwide who contacted me directly. When the valuation had been done, I was told by this person by email, that "the valuation report has been received and as long as we are not awaiting any outstanding information,your mortgage offer should be on it's way out in the next couple of days". He advised to call to find out more with my mortgage ref. So I asked my Mortgage Advisor (whom had not done much apart from making initial phone calls and fill the application forms) to call them as I did not have any ref n.

He called me back sounding a bit coy and basically told me it was bad news and that they had declined my mortgage as it was next to a takeaway (although closed for past 2 years). He said "I did not think of asking you that as I assumed it was just a normal property". The house is off a small town's market street and is therefore not far of commercial shops, but is also neighbour to many other homes (whom I assume all have mortgages).

I never knew that would be a problem and I am sure that when I was talking to my mortgage advisor at some point I even mentioned it was near a takeaway saying that I had tried to sell the property before putting it up for rent but that because of the takeaway and also building site not far off, that it had been difficult to find a buyer although it being beautiful inside.

I emailed the person from the valuation team (nicely) and asking if that was a criteria explained in the documents/forms they sent to my Mortgage Advisor. I.e. trying to understand if it is the Mortgage Works not stating it beforehand clearly, or my Mortgage Advisor rushing through things to quickly fill in the form.

I received no answer and this was 3 weeks ago. I have now resent an email to this person with cc to a general email address for The Mortgage Works.

The Mortgage Works does not seem to be regulated by the FSA (although Nationwide is), but the Mortgage Advisor is. The latter is also my estate agent for another property I am selling so it is a bit of a delicate situation as I have not confronted him about this yet. I feel quite resentful though as he is not proving to be a very good estate agent either (never available for viewings so I keep having to do them myself) and he has already cashed in on the commission for the other mortgage that went through (I think aroung £370).

Sorry for very long email, but I find it hard to give a good picture in less words.

Could you please advise me on what you would do in my situation? Many thanks in advance, Maria

TEDDYRUKSPIN

Mortgage valuations / survey will always be done by an independent company, trusted to that mortgage lender. Due to this, it is not refundable. If it was done directly by the mortgage adviser, he/she, will also state is not refundable.

As buy to let mortgages are not regulated yet, the only way to complain is through the adviser or the company directly.

Mrs_Bumble

He called me back sounding a bit coy and basically told me it was bad news and that they had declined my mortgage as it was next to a takeaway (although closed for past 2 years). He said "I did not think of asking you that as I assumed it was just a normal property".

You haven't got any claim against TMW as their criteria is fairly straightforward and a property next to a takeaway (whether closed or not) would be down to valuer's comments. In this business it does not pay to assume the property is standard and you ask the question! If you feel strongly enough then your claim is with the adviser who spent your valuation monies without asking sufficient questions, ask what redress there is.