Not upheld: Mortgage administration / arrears handling complaint against Marsden Building Society

Decision detail

Summary

Mr F complained that Marsden Building Society relied on an allegedly undervalued property valuation when he re-mortgaged in May 2021. The surveyor valued the property at only £10,000 more than in 2018 despite Mr F claiming £65,000 in improvements and local estate agents valuing it higher. This required Mr F to contribute an additional £7,000 from retirement savings. Marsden passed Mr F's concerns to the surveyor twice, but the valuation remained unchanged. The ombudsman found Marsden was entitled to rely on the professional surveyor's valuation and had no obligation to verify it independently or accept alternative valuations. The complaint was not upheld, and no remedy was awarded.

The Ombudsman's reasoning

The ombudsman determined that Marsden, as a lender, is entitled to rely on the professional valuation it instructed from a qualified surveyor. The Financial Ombudsman Service cannot determine whether a surveyor's valuation is correct or incorrect, as that is outside its remit. If Mr F disputes the surveyor's valuation, he must pursue that through the appropriate regulatory body for surveyors. Marsden acted reasonably by passing Mr F's concerns to the surveyor multiple times and even backdated interest as a gesture of goodwill. Mr F had the choice to accept or decline the offer and seek alternative products with other lenders.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website