Reclaiming mis-sold bank approved house survey

Beddylad

With our current mortgage provider a requirement was to have a survey completed.
We had arranged for an independent to do this however the Halifax told us it had to be one of their approved surveyors.
Unfortunately they cost twice as much and do a half .as in depth survey as the independent.

Is this a form of mis-selling and can we claim the cost back?

opinions4u

Beddylad wrote: »

With our current mortgage provider a requirement was to have a survey completed.
We had arranged for an independent to do this however the Halifax told us it had to be one of their approved surveyors.
Unfortunately they cost twice as much and do a half .as in depth survey as the independent.

Is this a form of mis-selling and can we claim the cost back?

A lender is entitled to appoint their own surveyor.

They are entitled to charge what they want as long as the fee is clear up front and forms part of their APR calculation.

You have the option of taking your business elsewhere if you don't like it.

kingstreet

A mortgage lender has a mortgage report and valuation carried out by a surveyor of its choice when considering a mortgage application. The fee is set and based on the purchase price. The fee schedule is published on the lender's website.

If you choose to appoint an independent surveyor to carry out a report for you, at your expense, that is your affair and nothing to do with the lender.

holly_hobby

Beddylad wrote: »

With our current mortgage provider a requirement was to have a survey completed.
We had arranged for an independent to do this however the Halifax told us it had to be one of their approved surveyors.
Unfortunately they cost twice as much and do a half .as in depth survey as the independent.

Is this a form of mis-selling and can we claim the cost back?

All mortgage lenders appoint a surveyor from their panel of surveyors whom operate in the area, in order to perform a basic survey (or homebuyers if you elect for this at application stage, and pay the extra fee). Indeed, Haliax's own surveyors are "Colleys" whom probably conducted/will conduct the survey here (unless they had no geographical presence in the area).

Generally speaking, it is of course also possible to appoint your own surveyor, and IF they are also on the panel of the lender, ask the lender if they will utilise this survey (less than 6 mths old), as part of the UW process.

Some lenders are happy to do this (for an admin fee), others will not accept any survey other than the one resulting from their own instruction and appoitment of surveyor ( even if the valuer you have used, also happens to be on their panel) - it is their choice I'm afraid.

Unfortunately it is just one of those things, and has been this way long as I've been involved in the industry (which is along time !) - but I wouldn't class it as "mis-selling" as you didn't have a choice whether to accept their surveyor or not (unless you changed lender), a more accurate terminology would be an unfair conditional requirement - which of course it isn't, all lenders req a basic survey to supporting lending, and as they are using the property as security for the monetary advance being afforded you, they may choose who peforms the valuation on their behalf, and indeed if they wish to accept a survey from an independtly appointed surveyor (RICS) of the applicant.

The survey fees are set in line with the stated pch price or estimated valuation of the property (ie remortgage), and are pretty similar in cost with all lenders - so even if you changed lender on the basis of you being unhappy with Halifax process, the survey fee with an alternative lender would probably be similar (or even more !).

Hope this helps explain and dispel your feelings that you have been unfairly treated in any way - everything you have experienced is standad practice.

Good luck with the house move.

Holly x

ACG

Lenders usually insist on a valuation. Is it this that your querying or was it a full building survey or homebuyers report?

If it was one of the last 2 then why did they insist on it? They are within their right to do it, but its unusual.

Goldiegirl

Most lenders will require a valuation for mortgage purposes only.

The Halifax uses Colleys for this purpose who are their in house valuers.

If the mortgage applicant wishes, Colleys can be instructed to do a home buyers report or a full structural survey at the same time as they do the valuation for mortgage.

I worked for the Halifax for many years, leaving in 2009. Up until that time, the Halifax's only requirement was for the valuation to be done by its approved valuer, the applicant was free to go elsewhere for any other type of report they wanted

holly_hobby

The applicant may of course (in addition to the lenders requirement for basic survey), instruct a 2nd completely independent surveyor for the production of a HB of FS report (for their personal requirements). Or as GG says, they may choose to instruct the lenders surveyor to conduct this at the same time as the BV - the important thing to note is that the lenders surveyor does not have to be appointed for both if the applicant has other requirements.

Hope this helps

Holly x

dunstonh

Is this a form of mis-selling and can we claim the cost back?

No.

Halifax want a valuation for mortgage purposes using their approved valuer. You want a survey by an independent which is something different to what Halifax want.