Nationwide Mortgage Application - Gave wrong valuation figure then backtracked

[bomile]

Hi all,

 

I recently applied for a mortgage through an intermediary. This was agreed in principle and they had received all documentation. The only thing remaining before receiving a full offer was the valuation.

 

This was carried out and my FSA called Nationwide who confimed the valuation amount as £112,000 and that they would shortly be sending out confirmation of the mortgage approval to 85% of the house value.

 

The valuation was slightly higher than I was expecting but this was good news as it meant I had less to pay to my existing mortgage provider to make the 85%

 

I received a solicitor letter asking for signature to release the house deeds and in that letter I had to indicate how much over or under the settlement figure I would be.

 

I logged on and had a look at the settlement figure and decided that I may as well make the overpayment at that stage to bring my existing mortgage in line with the 85% figure.

 

I also decided at that time to use some of my other savings to replace our old boiler.

 

After a few days of not hearing anything I spoke to my FSA and he contacted Nationwide. They told him that they had given an incorrect valuation to him over the phone and instead of the property being valued at £112,000 the actual valuation was £95,000 and the preivious agent he spoke to made a mistake.

 

I now don't know what to do as I am unable to afford the difference between the settlement figure and 85% of £95k so it looks like I won't be re-mortgaging anytime soon.

 

Whats worse is I have made decisions based on the information from Nationwide that I wouldn't have made (i.e. the mortgage overpayment and the replacement boiler) if they hadn't given the wrong information.

 

I know I should have waited for the official mortgage approval but it was all going along nicely.

 

I don't know what I am expecting but I now feel that I have parted with most of my savings and I have no new motrgage.

 

Any assistance or guidance would be appreciated.

 

Thanks

[slick132]

Hi Bomile and welcome to CAG

 

Sorry this slipped under our radar and remained unanswered - we're not normally so rude !!

 

Do you have anything in writing, either to you or to your IFA (I assume you meant Independent Financial Advisor when you said FSA above) which confirms the valuation at £112,000. You really need this to get anywhere in complaining and getting some redress for the error.

 

If you made any decisions based on that valuation, you may have a case to complain and ask for the return of the money you made as an overpayment.

 

Have you asked any local agents what they think your ppty is currently worth on the market.

 

[bomile]

Hi slick132,

 

Thanks for the response.

 

I had nothing in writing but I pursued this using their complaints procedure so I think I can put this to bed now.

[slick132]

Noted and thanks for the update.