Reclaiming Valuation fees when mortgage refused?

iamnotageordie

Hi Guys!

I would like to pick your brains on whether I have a valid complaint here.

I applied for a joint mortgage on a property worth £112500 with Barclays (Woolwich), We have a 30% deposit and We received an agreement in principle from Woolwich.

Based on this we had a bid on the property accepted, instructed a solicitor and Barclays (Woolwich) did a valuation survey which we paid for in advance and were told it was non-refundable.

We were subsequently outbid and had accepted that it was money lost.

Today we have received correspondence from Barclays detailing that they are sorry to inform us that they are refusing to lend to us based on our application details and credit scoring.

Why wasn't this done prior to an offer of mortgage?

Have Barclays (woolwich) taken a valuation fee (£295) with no intention of lending the money?

Is this something I can report to the financial ombudsman?

Thanks in advance.

Graeme

dunstonh

Based on this we had a bid on the property accepted, instructed a solicitor and Barclays (Woolwich) did a valuation survey which we paid for in advance and were told it was non-refundable.

And there is the crunch. You knew it was non-refundable.

Why wasn't this done prior to an offer of mortgage?

They cant be checking your details constantly. It would destroy your credit file. An agreement in principle is an agreement to lend providing what you have told them is accurate, no new information comes to light which could change that decision and assumes that lending criteria hasnt changed between the AIP and application.

Have Barclays (woolwich) taken a valuation fee (£295) with no intention of lending the money?

No. The valuation is to pay for the valuation and the valuation took place.

Is this something I can report to the financial ombudsman?

No. You cannot go straight to the FOS. You have to go through the complaints process first. However, there doesnt appear to be any complaint reason here. Just the typical perils that can happen when you buy a house.

iamnotageordie

Hi Dunstonh,

Thanks for the quick reply.

They cant be checking your details constantly. It would destroy your credit file.

I don't understand this point, the bank were always going to have to credit check me in order to lend?

An agreement in principle is an agreement to lend providing what you have told them is accurate, no new information comes to light which could change that decision and assumes that lending criteria hasnt changed between the AIP and application.

Barclays mortgage advisor had told us in December that we didn't need an AIP as we were "shoe-ins" the deposit for the mortgage we wanted then was 25%. We were asked for proof of mortgage when we looked at another property so we insisted on an AIP in January. They had changed their criteria and we had to put down 30%, which we did.

I have an excellent credit history, so does my partner, I don't believe this is the problem, They were quite woolly on the wording and offered me a credit reference check for £2 LOL.

No. The valuation is to pay for the valuation and the valuation took place.

No. I believe that an unnecessary valuation took place under false pretences, we spent 3 hours in branch with an advisor, completed all paperwork and waited for written confirmation of AIP.

Four weeks have passed since we let the property go, the valuation fee was not a concern to me, I am confused as to why I am only being informed now.

Why is a credit check only done AFTER a property valuation at £295 if a refusal to lend would make it all a moot point?

There is also the small print that a £150 withdrawal fee may be incurred after 6 months if we don't take up the mortgage offer from the AIP.

There are mixed messages here and I have the time to investigate it.

Thanks for your time,

Graeme

dunstonh

I don't understand this point, the bank were always going to have to credit check me in order to lend?

They do. However, there is no guarantee that you will find a property quickly. The checks may need repeating. They may well have checked your credit file but that is not the same thing as credit scoring. They will have their lending criteria and something changed in that or your information between the AIP and the application.

Bank clerks dont make good mortgage advisers. Most are no longer classed as advisers and most are low skilled with poor experience. Often no fault of their own. Some dont tell the staff member why it is rejected. Just that it was. So, they are left to guess.

The fact the valuation was requested indicates that the problem occurred later in the process. Lenders request the valuation only if the application looks good. Soi, it went past the first stages. Something has happened in the later stages. If I was you, I would want to find out what that is. My gut feeling is that it is not your credit record.

iamnotageordie

Ok,

They do. However, there is no guarantee that you will find a property quickly.

The mortgage application was made on a specific property address and value. We had already found a property.

The fact the valuation was requested indicates that the problem occurred later in the process. Lenders request the valuation only if the application looks good.

I believe that the basic valuation was a requirement of the mortgage product, I was told the basic valuation was the minimum that had to be done in order to proceed.

Again, I am questioning the validity of a mortgage product that insists on a valuation being done by that company's own surveyor, that is undertaken before credit scoring and a decision on fitness of the applicants.

To put it at it's most simple;

Why, when making a mortgage application for a specific property, were we not credit scored and refused at the point of entry?

Also, why, 3 months later, have they sent us a letter to say we are ineligible for this mortgage? If we had been successful we would have been at contract exchange by now?

I will go over the paperwork and make sure I am 100% on what I have said about the valuation criteria etc, and post some more specific quotes. Is this at least something I could have a more in-depth discussion with them about? I will complain to Barclays (Woolwich) in the 1st instance and see what they say.

Thanks,

Graeme

iamnotageordie

Hi There!

Just found a very good relevant thread, at consumer action group

Thread title:

Paid Halifax for surveyor fees, now they are saying no mortgage

I will use this as a basis for any correspondence.

I see reference here to an AIP not being the same as an offer of mortgage etc, so will read my small print and expect a similar response from Woolwich.

Thanks again,

Graeme

MelaBella

Hi Graeme,

I thought they credit check the client before the valuation is done. I saw they left a foorprint on my creditfile justt after a few days I submitted my application, so I take it as the approved my application subject to survey?

roonaldo

iamnotageordie wrote: »

Hi There!

Just found a very good relevant thread, at consumer action group

I wouldnt go by what you read there. A lot of the advice is incorrect and anti bank.