Not upheld: Mortgage administration / arrears handling complaint against Wave Lending Limited

Decision detail

Summary

Mr and Mrs R complained that Wave Lending Limited inflated the valuation of their buy to let property in 2007 and failed to conduct due diligence before lending. They also complained that Wave declined to extend the mortgage term and that they experienced difficulty contacting the firm. The ombudsman found that Wave was entitled to rely on an independent RICS surveyor's valuation that matched the purchase price Mr and Mrs R had agreed to pay, and that there was no obligation to provide a copy of the report to the borrowers. The decision to decline the term extension was found to be fair and reasonable. The ombudsman upheld only Wave's offer of £75 compensation for inconvenience caused by being on hold during a call.

The Ombudsman's reasoning

The ombudsman found that lenders are entitled to carry out valuations and appoint suitably qualified valuers. Wave was entitled to rely on the expert opinion of the independent RICS surveyor. There is no general obligation for lenders to provide a copy of the valuation report to borrowers. The surveyor's valuation was consistent with the purchase price Mr and Mrs R had agreed to pay, and it was unlikely they would have acted differently had they seen the report, particularly as they had chosen a basic valuation rather than a more comprehensive survey. Regarding the term extension, Wave's response was fair as this was a speculative proposal based on market changes, and there remained time before maturity for Mr and Mrs R to explore options including sale or remortgage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website