Not upheld: Mortgage administration / arrears handling complaint against Castle Trust Capital PLC

Decision detail

Summary

Mr S complained that Castle Trust overvalued his buy-to-let property when he redeemed his mortgage in 2024, using a valuation of £512,000 that resulted in an additional payment of £84,800. Mr S later sold the property for £395,000, significantly lower than the valuation. The ombudsman found that Castle Trust reasonably instructed an independent, qualified surveyor and had no reason to question the valuation. The ombudsman also found that Castle Trust clearly communicated an appeals process to Mr S multiple times, which allowed for second and third valuations if he disagreed. Since Mr S did not formally appeal the valuation within the required timeframe, the ombudsman did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman determined that Castle Trust acted reasonably by instructing an independent, qualified surveyor and relying on their professional opinion. The ombudsman found no reason a reasonable lender would have questioned the valuation. Critically, the ombudsman found that Castle Trust clearly communicated the appeals process to Mr S multiple times, and that Mr S did not formally appeal the valuation within the required timeframe. The ombudsman noted that while the subsequent sale price was significantly lower than the valuation, this did not render Castle Trust's reliance on the surveyor's opinion unfair or unreasonable. The ombudsman also found that Castle Trust did not mislead Mr S about his ability to appeal.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website