Mortgage problem - Compensation

Emmaandneil · 7 March 2016 at 9:34PM

Hi everyone,

I recently applied and was accepted for a mortgage with a well known lender. There was a slight reduction in the asking price for the property after the mortgage was agreed. I was initially told by the lender this would be no problem, but was then told I would have to go through another full application. The delays caused by this resulted in the house being re-advertised.
After 2 weeks and a few heated phone calls, the matter was sorted satisfactorily.

After my approach, the lender initially offered £100 compensation for the distress caused. However after I queried this they have offered an additional £250 (£350 in total). With the second offer I have been asked to sign a form which states that by signing this form will end my claim against the lender.

Is £350 an acceptable offer in these circumstances or would I be 'selling myself short' if I accepted this amount?

Thanks in advance for any advice :-)

RhysHSCC · 7 March 2016 at 9:42PM

Hi emmaandneil

I think you should weigh it up against money that you have spent through the application so far.

Has the property in question still advertised or has it been sorted with the vendor and you're still purchasing it?

If you've spent less and still able to purchase, think it's a fair amount, although I am surprised that they made you go through a whole new application for a change in purchase price.

You should have had the original advice revisited and a critical amendment performed. Certainly not a full new application

Emmaandneil · 7 March 2016 at 10:02PM

My apologies I should have have been a bit clearer....

The lender relented on the need for another application and I got the house with no extra costs. The " compensation" is for the distress caused by the delay in deciding they did not need to do another application when the house had been re-advertised.

On that basis I think you're saying it's reasonable.

I appreciate your reply :-)