Not upheld: Mortgage advice complaints complaint against Wave Lending Limited

Decision detail

Summary

Mr and Mrs R complained that Wave Lending Limited failed to provide a copy of a valuation report when they took out a buy-to-let mortgage in 2007 for £161,500 on a property valued at £190,000. The valuation report contained a requirement for a mining report, which Mr and Mrs R said they were unable to consider due to not receiving the report. By 2021, the property value had declined to approximately £160,000, leaving them in negative equity. The ombudsman found this complaint was substantially identical to one previously decided in 2022 and declined to reconsider it absent material new evidence. The ombudsman confirmed that lenders have no general obligation to provide valuation reports to borrowers and that Mr and Mrs R, as buy-to-let investors rather than consumers, had a responsibility to obtain their own survey.

The Ombudsman's reasoning

The ombudsman determined that this complaint was substantially identical to the one decided in 2022, concerning the same provision of financial service (mortgage lending and valuation), the same financial losses, and the same material distress. While Mr and Mrs R presented different arguments and evidence, this does not constitute a new complaint. The ombudsman noted that FOS rules allow dismissal of complaints where the subject matter has previously been considered unless material new evidence subsequently became available. No such new evidence was presented. The ombudsman also confirmed the previous finding that there is no general obligation for lenders to provide a copy of the valuation report to borrowers, and that even if a copy had not been provided, it would make no material difference as the mortgage had already completed and a copy was eventually provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website