Mortgage Declined But Valuation Fee Taken - IMMORAL!

tommysmum

We are FTB's and have just been informed that our mortgage application through Nationwide has been declined.

I have just checked my bank account and £399 has been taken by them, the fee for the 'Valuation Survey'.

Reading the small print it says:

'...you should be aware that where this has been paid for by you, the fee will not be refundable if the lender subsequently declines your application (for any reason).

'...You will usually be contacted by the surveyor to arrange access to your house, although on occasions the lenders valuation will only comprise of a 'drive-by' appraisal from a local surveyor familiar with the area, so you may ot be aware that this has taken place.'

This is surely unethical. How can they just take money like this for something that was not necessary (i.e. we were declined anyway so the 'valuation survey' is pointless).

What can I do? Please tell me that I can reclaim this money. I feel totally sick and utterly shafted.

:eek:

luckyfool

You can get a refund for the valuation as long as it has not taken place, though any admin fee will not be refunded. Call them up and make sure the survey is cancelled if it has not already been done.

Cannon_Fodder

Do you know if the survey was instructed before the application was declined?

It might be they took the fee in readiness to perform the survey. Now, if not yet performed, but the application has been declined they might agree to refund the fee. Worth a phone call to them.

If the application was further along, and the survey had taken place, then they still have to pay the firm which carried out the survey. So I wouldn't expect them to refund.

Nor should they have to, as it was in your small print.

What reason was given for the decline?

GMS

Find out the reason for the decline. If it is due to the property then you have no argument with them as they were unaware without instructing a survey which has to be paid for. If they have declined you for another reason then I would argue that they should not have instructed a survey as they had no intention of using the property as security meaning a valuation is a waste of time.
Good Luck

dunstonh

Reading the small print it says:

It is not small print. Its as bold as day on the key features illustration. That document is designed to lay things out nice and clearly. Of course, its only any good if you read it.

This is surely unethical.

Why? Who is going to pay for the surveyor if you are not?

Assuming you didnt use a mortgage broker (you should have as you could have avoided this), then NW dont automatically take the fee and arrange the valuation until the application is submitted. They only submit applications that they think are likely to succeed. So, it has gone through one filter.

What can I do? Please tell me that I can reclaim this money. I feel totally sick and utterly shafted.

First thing is you should realise that you are buying a mortgage. Its a serious financial transaction and one of the biggest things you will ever buy. Possibly only your pension will be bigger. So, stop treating it like buying an ipod. The documents are issued for good reason and that is for you to read them. So, read them.

Second thing is that Nwide have been known to refund and may do it as a goodwill gesture if the valuerer had not yet done the valuation. So, you can ask. However, legally, they have no reason to refund.

Thirdly, use a mortgage broker. You get more consumer protection as its an advice process and you clearly need the extra handholding (which is not unsurprising as you say you are an FTB).

Sorry the post is blunt in places but didnt want to wishy washy around the point. This is a serious transaction and needs to be treated as one.

Mobility151990

NBS will not refund if the valuation has been carried out.

kinghenry8

I was charged a valuation fee of just over £600 which I thought was hefty for two papers with nothing about the property condition. I was also told this amount would only be taken from my account if mortgage was definitily going to offered, it was agreed in principle and all credit checks etc they were satisfied with I gave my card details and mentioned that I only wanted this valuation to be carried out if I am guaranteed a loan, and this was confirmed to me by mortgage broker. After several weeks of requesting more proofs by lender via mortgage broker, which I have provided, mortgage has been declined by Aldermore on the basis of a small default going back over six years by mobile co Vodaphone for £390. Should this not have been checked before my money was taken, I even mentioned this to broker? Can I do anything to make recovery of my £600? I have lost the house and my money.

GMS

kinghenry8 wrote: »

I was charged a valuation fee of just over £600 which I thought was hefty for two papers with nothing about the property condition. I was also told this amount would only be taken from my account if mortgage was definitily going to offered, it was agreed in principle and all credit checks etc they were satisfied with I gave my card details and mentioned that I only wanted this valuation to be carried out if I am guaranteed a loan, and this was confirmed to me by mortgage broker. After several weeks of requesting more proofs by lender via mortgage broker, which I have provided, mortgage has been declined by Aldermore on the basis of a small default going back over six years by mobile co Vodaphone for £390. Should this not have been checked before my money was taken, I even mentioned this to broker? Can I do anything to make recovery of my £600? I have lost the house and my money.

Was this for a Buy to Let application as Aldermore would usually be ok with old defaults on residential applications.

holly_hobby

kinghenry8 wrote: »

mortgage has been declined by Aldermore on the basis of a small default going back over six years by mobile co Vodaphone for £390.

Defaults expire and should be removed from your credit file on or following their 6th anniversary of registration - so if this has been missed by the CRAs (experian, equifax etc), you need to ensure they amend their records accordingly, as it is unnecessarily affecting you.

Re the original post - its already been said, survey fee is always taken at app stage but good practice is not to instruct until status UW has been satisfied. If this is the case you should receive a refund(less an admin fees declared in the POS docs), if they haven't acted this way it does not mean that they are negligent, but it does mean you've lost your fee. Depending upon the panel surveyors used, they may also be on your alternative lenders panel, and NW may provide you with a copy survey (if a basic survey was carried out, if anything above this i,e Homebuyers of Full Structual you should get a copy automatically from the surveyor) which you could include with your new app - the new lender may decline to use it and want to instruct their own, or they may be generous and accept it for an admin fee (saving you a further basic survey fee if this is the case).


Hope this helps

Holly

KiethBEN

Oh god I've heard about this kinda thing very first time and don't on this situation how you're feeling and what you'll have to do to prevent yourself. but hope to see you outta all this soon.

dunstonh

Just to note that this is a 2 year old thread that has been resurected with an mostly unrelated question.