hi all,

I purchased a property in 2007 for £105000 which is now in negative equity. More recently properties of the same kind on the street have been sold averaging £80000. The lender had carried out 2 valuations over a period of six months when the original mortgage was taken out. The first valuation report hadthe reinstate value of £87000 and the second at £92500. Recently i been advised the lender is to renew the insurance policy and that sum insured would be £107000.

I opposed this figure and told the lender that their original reinstate valuation is wrong and was overvalued to reflect the house price market of the time and believe the reinstate value is approx £70000.

I received a letter from the lender stating they inputted the wrong reinstate value at the time of completion and a more upto date reinstate figure is £105000. I called and spoke to their agent who told me that the letter is wrong and no incorrect reinstate value was input on completion but the reinstate value had been indexed linked twice giving the incorrect figure of £107000 rather than £105000. The agent confirmed what was in the letter andwhat she told me was contradictory.

Now i have two issues which i need some helpful advice

(1) if a property has a sale value of £80000 is it a fair understanding for the reinstate value to be £105000.

Is the sale of the property reflective of the cost to rebuild the property?

Is the rebuild cost not a factor determining the cost of sale?

in other words are properties sold less than the actual cost of its building even when condition is good?

(2) The lenders agent was unable to give me further information on the indexed linked figure for me to determine the difference and any over charging on my account. As their is contradictory information but an agreement to some error on their behalf does that equate to a breach and what actions should/can i take?

anyone had any experience with their lender with regards to over valuation?

thanks guys for the replys.

Its funny how the collection manager was so adment and forceful with his opinions on the law. I will definately be persuing this matter further and will claim the monthly fee's as well as the interest on the arrears.

dx100uk do u reckon i should do this through the courts rather than the ombudsman if blemain fail to comply?

Hi all,

newbie to the site and require help.

Already searched many of the threads and a lot of information to digest as well as it all being abit confusing.

I have 2 secured loans with blemain finance

they have county court orders dating back from 2010 for arrears of aprox £2000 on each account (£4000)

was ordered to make payments of £200 on each account to pay off the loan as well as the arrears.

I have maintained these payments month by month but i still occurred monthly arrear charges of £46 if my payments were a few days late

and also interest on the outstanding arrears.

I have notified them that i may be few days late with payments,

to which they say 'nothing can be done as the courts have ordered for payment on the specific date'.

I made a complaint and spoke to a manager in the collection department who told me that the charges were fair and regulated by OFT

and were not excessive and reflect the cost for being in arrears.

He took my complaint and advised methat the response i will receive will be no different from what he has already told me (very arrogant of him).

I have done a sar ( thanks to the advice i have read on this website as unaware of it previously) and will be anticipating for the information.

I believe £46 is excessive and unfair for monthly arrears and also read elsewhere that another borrower is being charged £35.

Could blemain justify charging me £11 more?

Also has anyone successfully claimed these charges back from blemain?

Can i also claim back the interest charged on these arrears?

These arrear charges and the interest on the arrears are never ending and putting myself into further debt.

I dont think i would ever be able to pay off the loans with this arrangement.