What legal rights do I have to a refund of my valuation fee?

ldare2000

Hi,

My fixed mortgage with Santander expires today and so am free to shop around. I had sourced a deal with the Principality two months ago and I had a mortgage offer in place and solicitors waiting to process the transfer of funds on Monday!

The Principality have changed their mind this week. I have a second charge on the house, something they were fully aware of when they gave the original mortgage offer. However they now claim a senior underwriter has overruled the original underwriter. The second charge is at 0% APR and I have until Aug 2018 to repay. One of these new home developer schemes.

When I took out the mortgage I paid a £99 arrangement fee, which Principality have offered to refund but also a £330 Valuation fee. The mortgage advisor says this can't be refunded and has advised I write a letter of complaint.

I plan to write a letter of complaint this weekend. What should I include? Do I have any legal protection? Do I mention County Court Claims, FSA or Trading Standards at this stage?

Thanks in advance,

Louis Dare

Thrugelmir

The lender can decline the mortgage application at any stage prior to completion. The valuation fee covers external costs that the lender incurs, i.e. the surveyor. So there's no possibility of obtaining a refund once the valuation is conducted.

kingstreet

Has your solicitor successfully obtained a deed of postponement for the second charge? This is a requirement, otherwise the developer's second charge is automatically promoted to a first when the current mortgage is repaid.

This would apply with any lender to whom you remortgage.

Your broker should have advised you of this requirement. I presume there is a problem in obtaining the deed and that's why PBS is unwilling to continue?

ldare2000

kingstreet wrote: »

Has your solicitor successfully obtained a deed of postponement for the second charge? This is a requirement, otherwise the developer's second charge is automatically promoted to a first when the current mortgage is repaid.

This would apply with any lender to whom you remortgage.

Your broker should have advised you of this requirement. I presume there is a problem in obtaining the deed and that's why PBS is unwilling to continue?

Hi,
Nothing like that, the developer has forms that they issue for remortgaging that the solicitor has processed.

I guess I'll have to threaten a County Court Claim.

Cheers
Louis

ldare2000

I was never told my the Principality Mortgage advisor that there was a chance the mortgage offer could be withdrawn - in fact I was extremely cautious about the £99 application fee and he was aware of this. So as I was cautious over £99 prior to the offer I never would agreed to risking another £330.

GMS

Your paperwork will state which fees is any are refundable. As the valuation has taken place the cost has been incurred and paid for.

What is the reason for the offer withdrawal?

Was the second charge declared on the application form and stated as not to be repaid upon completion of the new mortgage?

If there is something contained within the lease that the lender doesn't permit then it is not the lenders fault.

If the current mortgage is redeemed the second charge autoatically becomes the first charge. The lender would need to postpone the charge in favour of Principality. If they can't/won't then Principlaity cannot get a registered first charge and won't complete.

What has your solicitor told you the reason is?

Simon_gloster

Irrespective of anything, a deed of postponement is needed here causing you weeks of delaye and possibly costs. Why complain when all you want is a mortgage. Concentrate on that first as you'll never get anywhere without it. For all you know the 2nd charge could say no and it'll all be a waste of time.

Ever the optimist.

ldare2000

Simon_gloster wrote: »

Irrespective of anything, a deed of postponement is needed here causing you weeks of delaye and possibly costs. Why complain when all you want is a mortgage. Concentrate on that first as you'll never get anywhere without it. For all you know the 2nd charge could say no and it'll all be a waste of time.

Ever the optimist.

There is no issue with regards to the status of the second charge, the developer provides fast track paperwork to allow remortgages.

Principality's feedback was that they were withdrawing as there was a high risk. They said "What happens if I can't afford to repay the 15% back by 2018". This was not an issue with for the original underwriter. Also no real need for concern as by 2018 I'd have just 13 years left on the mortgage and if I had not repaid could easily borrow the 15% in a remortgage.

The issue I have, and lets forget about the second charge, is a mortgage offer was made, an underwriter approved the application, so why should I be out of pocket if a senior underwriter pulls the plug, especially when I had not be made aware of any risk of withdrawal.

Ta
Louis

ldare2000

GMS wrote: »

Your paperwork will state which fees is any are refundable. As the valuation has taken place the cost has been incurred and paid for.

What is the reason for the offer withdrawal?

Was the second charge declared on the application form and stated as not to be repaid upon completion of the new mortgage?

If there is something contained within the lease that the lender doesn't permit then it is not the lenders fault.

If the current mortgage is redeemed the second charge autoatically becomes the first charge. The lender would need to postpone the charge in favour of Principality. If they can't/won't then Principlaity cannot get a registered first charge and won't complete.

What has your solicitor told you the reason is?

There was no issue with regards to the status of the second charge, the issue was this that the second charge could pose a risk in 2018 if unpaid.

GMS

A mortgage offer can be withdrawn at any point.

Second charge going unpaid would not be a risk ti the first chareg holder as even if the 2nd applied for possession they wouldn't begin to get paid until the 1st was cleared.

Your solicitor should be giving you some answers here.

ldare2000

Hi,

So no one's actually going to give any help or advice in relation to getting the valuation fees refunded. The fee was paid directly to Principality for a service that was mis sold.

Shame,

Louis