remortgage / bank incompetency issues

dillthedog

hello, thought I would put my situation to you guys.
in jan , i decided to remortgage with a large bank, whom I have been with for over 20yrs. I wanted to remortgage to the max value of approx 50-60% of the worth of the house. all was fine credit ref ok , etc, etc, i was told I did not need revaluation and it wasn't worth it to take down mortgate a tiny percentage that would not be recouped in the fixed period that I wished to take rate for. amount agreed, rate agreed, admin cost agreed. told that paperwork would be out in a couple days, sign and send back. paperwork came saying all ok- but no offer after a week contacted bank- told that valuation was required. why? no reason given just required by underwriters. back/ forward this went- yes/no. after much wranglling,various bank staff involved, eventually after some 2 months just got it done to enable me to go ahead with the remortgage(cost £300) also provided list of improvements to be done. all ok. then got offer, duly signed and sent back , then recieved more paperwork for a sum approx half of the amount asked for, thought it could not possibly be my outstanding mortgage (also to be switched on to new rate) so phoned- was astounded to be told that there had been errors made and non one had told me, but I was being offered much less (just over half _ what i asked for. this being 4 months down the line, after I recieved offer, signed said offer, returned it etc. I have not signed for this different amount however, it has been placed in my account without my agreement. bank have admitted that many errors made by many people have occurred in my case and that there will be compensation (not known) but they won't give me the mount I have signed for. I am afraid to touch this money in my account that I did not agree to.meanwhile this has cost me approx £2k due to survey, admin costs and credit charges. what do I do???

I simply want the original amount I agreed to and signed for. I forgot to add I have over a dozen letters telling me that the bank was delighted to offer me the amount asked for and that it was progressing. At no point was it ever mentioned that I would be offered less until an offer came AFTER i signed the original offer. please note the 2nd offer was dated after i signed the original offer. I have made it clear I have not and would not have accepted the 2nd offer (it took mortgage under 40% so the rate should have been lower). yet the bank put money into my account without my agreement.

help, help help ????:(

Lucy_Lastic

Financial Ombudsman?

holly_hobby

It sounds to me that the property on inspection, was down valued (i.e the valuation cited by the valuer noted, is less than that indicated in your application).

Any lender reserves the right to a property valuation - the no valuation you mention - would be classed by the lender as a "drive by" - i.e they just make sure the house exists & looks reasonable from the outside. They can however elect for an attended valuation, or even having conducted a drive by elect for an attended valuation at that point. So there reallly isn't any comeback on that I would say.

So, bearing in mind the almightly mess up - and the fact they have confirmed that they have revoked the original offer, and offered a reduced amount - which you don't accept, there is really only one option I would suggest, that would be to reject the monies deposited, and ask for a reversal of the whole thing - due directly to the banks errors and incompetence in the matter.

The monies deposited in your accout for the advance, returned to them - less the direct cost you have incurred during the administration of the matter. (which you say is 2k) - less the amount of agreed compensation (with their agreement of course n writing).

Following which, and you if still require equity release, you could re-mortgage elsewhere - but be mindful that any valuation may again down value your estimate of your property - and then you're back to square one.

Hope this helps

Holly

dillthedog

hello, thanks for responding.
However, you have the wrong end of the stick- there is no probem with the valuation. the house valued fine. It was EXACTLY as the bank had assumed ( which was strange really, as houses go for much more here than the valuation). I haven't been given ANY reason for why I am being offered less.

I understand your advice, which would be fine except for the fact that the bank did a full credit check ( which was apparently fine- the bank said they would not have offered anything if it hadn't) - but as Everyone knows, each and every credit check that is done leaves a "footprint" as the bank calls it and it hits your credit scoring. So if I approach another bank, I automatically have a lower score due to the credit check done by the bank- and hence, I may not be accepted by another bank.

Otherwise, I would vote with my feet and change my mortgage and my bank accounts et all away from such a bank that acts so incompetently.
I need to know how to deal with my incompetent bank to come out of this as favourably as possible without being driven to the edge of reason. and quickly.
:(I have asked the FSA for advice but they say to give the bank a chance to work it out first- which apparently may take months. meanwhile I am left in hiatus ( which is some form of hell).

kingstreet

Just to clarify, you've applied to your current mortgage lender for a further advance, not to a new lender for a remortgage?

You received an offer which has now been superceded by a new offer of a lower amount?

You mention fees and costs of £2,300. Could you clarify what these costs were and when you paid them?

Having a credit check does not necessarily reduce your "credit scoring." A number of checks without accompanying account information would alert a potential lender to a possible problem, but a single one should not prejudice your chances with another lender, unless you have other weaknesses in your application.

In your circumstances I would seek out another lender for a new mortgage. In my experience, the remortgaging process is less painless than that required to get what, on the face of it, seems a simple idea - asking your current lender for more money.

Many remortgage deals offer free valuations, free legal work and a rate based on the effectiveness of paying an arrangement fee. For example, a lower mortgage amount would be best suited to a fee-free deal where a larger or longer mortgage deal might make paying such a fee more cost-effective.

dillthedog

hello, actually I found this catalog of errors by the bank has actually cost nearer 3k to date( credit charges, admin, survey etc, etc) the bank has offered a few hundred pounds in compensation, which is very minor, especially when I take into consideration the amount of distress caused to me . I have written verification from the bank of the many errors that were made- a complete admittance of the incompetency in regard to the situation. bank is asking for the whole situation to be reversed and can they have the money back. Unfortunately, I do not believe the situation can be reversed, given the credit score and check that the bank did.
I am not at fault in this matter in any way- however, I believe the if the boot was on the other foot so to speak, I would find that I have been tied into the home loan and it would be impossible to get out of it without incurring massive costs- therefore, it should not be any different for bank.
Meanwhile, I still have their money in my account. ps. I have asked for all charges/ fees evied to this money to be removed, as it was without my permission.
way forward anyone? please note- I still need to remortgage- and have now missed the low rates...

Ms_Sophia

What bank is that please?