Was i miss-sold?

rjbell78

My fixed term had ended with my lender NatWest. I logged into my online account and they were offering me new fixed terms so I decided to take a 5 year fixed. The forms came out and I agreed to the original house valuation when we first purchased and the house and interest rate and returned the forms. I thought nothing of the valuation until after a matter of weeks Natwest started adding more information to the online dashboard where it now gave you a house valuation and LTV calculation. They are now giving me a house valuation of £250k and an LTV of 40 something percent when just a few weeks before they valued it at £172k with a much higher LTV.

This seems very underhand was I miss-sold? Can I do anything about this?

davidmcn

Sorry, you had said you "agreed to the original house valuation" - which was the £172k? How did they arrive at that figure? And how have they arrived at the updated figure of £250k? Do you agree with that figure too?

Have you actually moved onto the new product? It doesn't sound like you have yet, so I'm not sure what's "underhand" or mis-selling about it.

MovingForwards

So you purchased a house in 201?
For £172k
Its now valued at £250k with a LTV in your favour? (E.g you have more equity than mortgage as your property has increased in value and you have paid some of the mortgage off).

What were you miss-sold on?

rjbell78

MovingForwards wrote: »

So you purchased a house in 201?
For £172k
Its now valued at £250k with a LTV in your favour? (E.g you have more equity than mortgage as your property has increased in value and you have paid some of the mortgage off).

What were you miss-sold on?

No not in my favour i should be on a much better deal. I'm on a 70% LTV rate rather than a 40 ish % one.

elsien

Do you not choose a mortgage based on the amount left to pay, the term, the interest rates and the other bits of the mortage offer that are important to you such as the ability to overpay.
If they met your criteria when you signed up to the deal, why do they not meet them now?

rjbell78

davidmcn wrote: »

Sorry, you had said you "agreed to the original house valuation" - which was the £172k? How did they arrive at that figure? And how have they arrived at the updated figure of £250k? Do you agree with that figure too?

Have you actually moved onto the new product? It doesn't sound like you have yet, so I'm not sure what's "underhand" or mis-selling about it.

Yes i'm on the deal with their £172k valuation but weeks after they say its worth £250k.

No one came to value the house.

rjbell78

elsien wrote: »

Do you not choose a mortgage based on the amount left to pay, the term, the interest rates and the other bits of the mortage offer that are important to you such as the ability to overpay.
If they met your criteria when you signed up to the deal, why do they not meet them now?

Well, if they gave me the valuation they're giving me now weeks after i'd be paying to have the interest on my mortgage.

dimbo61

They use what is called a Deck top valuation which looks at recent sold prices in your area for say a 3/4 bed detached house LIKE! yours ?

Now the usual LTV levels most lenders look at is 100%, 95%, 90%, 85%, 75% and 60%
So what rates do they have for 60% LTV deals for existing customers ?
Ring them on monday and ask

[Deleted User]

The online service is a non advised, execution only service. There is a section somewhere in the terms and conditions that they will use an indexed valuation or the original purchase price for the purposes of generating an ltv. If you dispute you can request a valuation to be done.
They obviously had a run of revaluations on your area and changed your assumed value.

Ultimately it will come down to 2 things:

1. It's non advised execution only so they didn't lead you in any way to make this choice
2. You will have seen the value on the forms they sent you to sign and you could have disputed it then if you felt it was too low.


What would you be doing if they revalued all the properties and yours went down? I bet you wouldn't be asking for a higher rate

rjbell78

Deleted_User wrote: »

The online service is a non advised, execution only service. There is a section somewhere in the terms and conditions that they will use an indexed valuation or the original purchase price for the purposes of generating an ltv. If you dispute you can request a valuation to be done.
They obviously had a run of revaluations on your area and changed your assumed value.

Ultimately it will come down to 2 things:

1. It's non advised execution only so they didn't lead you in any way to make this choice
2. You will have seen the value on the forms they sent you to sign and you could have disputed it then if you felt it was too low.


What would you be doing if they revalued all the properties and yours went down? I bet you wouldn't be asking for a higher rate

Thank you. I thought this would be the case. I agreed to the terms and signed so nothing i can do about. Just accept it and move on or is it worth a letter asking for a revaluation?

charlie792

are you totally sure the rate you've been offered isn't based on the 40% LTV?

When I switched product rates with NatWest two years ago that's what happened.
House was originally valued at £135k and 80% LTV and at end of deal I applied for new deal. The rate I got was a recalculated LTV based on a indexed valuation of £154k (I didn't ask for that they just did automatically)