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

Decision detail

Summary

Mr M and Mr T complained that Cambridge Building Society's valuation of their property at £440,000 was inaccurate and that they should have received a valuation sooner for their rate change application in August 2024. They believed the property was worth £500,000-£550,000 based on estate agent estimates. The ombudsman found that Cambridge properly appointed a qualified surveyor and was not accountable for the surveyor's professional valuation judgment. The use of an index-linked valuation for the rate change application was standard practice, and the timing issues resulted from Mr M and Mr T contacting Cambridge only one day before their rate ended. Multiple independent valuations (£440,000 and £450,000) supported the lower valuation figure. Cambridge's offer to waive the early repayment charge was deemed fair, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Cambridge acted reasonably by employing a suitably qualified surveyor and was not accountable for the surveyor's professional judgment on valuation. The use of an index-linked valuation for a rate change application was standard practice, and requiring a physical valuation for additional lending was appropriate. The ombudsman noted that multiple independent surveyors (the original surveyor and the shared ownership company's surveyor) valued the property significantly lower than Mr M and Mr T's estimates. The timing of the rate change application was Mr M and Mr T's responsibility, as they only contacted Cambridge on 30 August 2024 when their rate was ending on 31 August 2024. The Cambridge adviser fairly explained the options and risks. The offer to waive the early repayment charge was more than fair as it gave Mr M and Mr T a position they could not otherwise have been in.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website