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Advice - mistakes at every turn, so want mortgage company to put up money to reserve
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sarah-b8
Posts: 69 Forumite
Hi All,
Just after a bit of help and advice.
My husband and I are midway through a mortgage application directly through Natwest. We are first time buyers trying to buy an newbuild property on the Newbuy scheme.
Due to our circumstances we have had to deal with the bank and application ourselves, we tried finding an alternative with two brokers but this was our only option.
Unfortunately the process has been less than smooth and to cut a long story short we have raised an official complaint and we are now in the following position. We have provided the bank with all supporting evidence requested and now also evidence of our deposit. I am hoping to hear shortly that we are moving forward to have a valuation report done.
The issue we now have is that we at this stage have not paid to reserve the new build property (£1000.00) on the advice of Natwest. However the developer has said that to allow the valuation report to go ahead we will need to reserve the property! I am reluctant to pay out £1000.00 when we still dont have it confirmed that we have the mortgage offer, so what I was wondering is could we ask Natwest to put up the £1000.00?
If all goes through they will get the money back as part of the depsit we pay for the house and if not then that can be the compensation that we want for all the stress, upset, hasel and time we have had to take off of work to chase and sort out all the problems that we have had throughout the application process.
Am I expecting way too much or is this a fair compramise???
Many Thanks
Just after a bit of help and advice.
My husband and I are midway through a mortgage application directly through Natwest. We are first time buyers trying to buy an newbuild property on the Newbuy scheme.
Due to our circumstances we have had to deal with the bank and application ourselves, we tried finding an alternative with two brokers but this was our only option.
Unfortunately the process has been less than smooth and to cut a long story short we have raised an official complaint and we are now in the following position. We have provided the bank with all supporting evidence requested and now also evidence of our deposit. I am hoping to hear shortly that we are moving forward to have a valuation report done.
The issue we now have is that we at this stage have not paid to reserve the new build property (£1000.00) on the advice of Natwest. However the developer has said that to allow the valuation report to go ahead we will need to reserve the property! I am reluctant to pay out £1000.00 when we still dont have it confirmed that we have the mortgage offer, so what I was wondering is could we ask Natwest to put up the £1000.00?
If all goes through they will get the money back as part of the depsit we pay for the house and if not then that can be the compensation that we want for all the stress, upset, hasel and time we have had to take off of work to chase and sort out all the problems that we have had throughout the application process.
Am I expecting way too much or is this a fair compramise???
Many Thanks
0
Comments
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Can't see this being agreed by Natwest.
Developer needs to compromise here. Either let the valuation go ahead pre-reservation or make the fee refundable if valuation does not match their asking price.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I doubt it. Your probably better off paying it, then seeking any redress afterwards. Natwest arent the only bank offering mortgages so is there a particular reason you are sticking with them, considering any problems you have had with them? or is the issue with the developer?
From the developers point of view, i doubt they would keep the property for you without you paying the reservation fee. If another buyer comes along who is willing to pay the fee, nothing to stop them giving it to them.Trainee Building Surveyor
DIP 12/02/13 - Mortgage application 13/02/13 - Valuation 14/02/13 - Valuation OK 22/02/13 - Mortgage offered 05/03/2013 - Completion 22/03/2013
FINALLY IN MY FIRST HOME!!! WAHOOOOOOO! :beer:0 -
Am I expecting way too much or is this a fair compramise???
If you are seriously interested in purchasing the property then you are going to have to risk the reservation fee yourselves. Not an issue for a potential lender. As there's no guarantee of you receiving a mortgage offer.
If you are uncertain walk away and spend a few months building your deposit.
Is the reservation fee refundable?0 -
Reservation fees are always refundable if you are unable to proceed. Upto £250 can be deducted to cover admin costs IIRC. Check with your builder.
You are not going to get a lender to give you £1,000. You have made no commitment to it until completion has taken place, so any incentives it gives will not be given until then.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for all your reply's,
I thought I was pushing my luck but thought I would ask the question and see what others opinions are.
We are going ahead and reserving the property (although that is also proving to be harder than it should be, a story for another day however) and we will try and get compensation from Natwest further down the line.
Many Thanks0 -
Unless you have a provable loss, compensation for poor admin on a mortgage application will normally get you £50 and a bunch of flowers.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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We have both had to take time off of work to sort this out and there have been some major fundermental errors. Hopefully this will equate to more than £50 and a bunch of flowers but we will wait and see and I wont hold my breath!0
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Good luck with Natwest...0
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I think if your options are limited to NATWEST I would be doing nothing to upset them !.0
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If you don't want to take any risks, don't buy a house. You will be putting money at risk for as long as you own it!0
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