Not upheld: Mortgage advice complaints complaint against Godiva Mortgages Limited

Decision detail

Summary

Ms G applied for a buy-to-let mortgage re-mortgage through Godiva in October 2024. The valuation, completed in November 2024, concluded the property was outside Godiva's lending criteria, leading to application decline. Ms G disputed the valuation's property description and appealed, but the valuer maintained its decision. Ms G's initial complaint email went to Godiva's spam folder, causing a delay in formal registration. Ms G subsequently obtained an alternative mortgage at a higher rate and with an Early Repayment Charge, and claimed Godiva was responsible for the resulting financial loss. The ombudsman did not uphold the complaint, finding that Godiva appropriately appointed a qualified expert, properly relied on the valuation, and provided an appropriate appeal process, and that the complaint handling delay did not prevent Ms G from seeking alternatives.

The Ombudsman's reasoning

The ombudsman found that Godiva appointed a suitably qualified expert (a surveying business) to assess the property, and lenders are entitled to rely on expert opinions from appropriately qualified professionals. The ombudsman noted that lenders are not property experts and should not be expected to question professional interpretations or RICS guidance. The appeal process Godiva provided was appropriate and in line with industry practice. The ombudsman rejected the argument that Godiva should have verified the surveyor's qualifications and supervision, as this is a RICS requirement. Regarding complaint handling delays, the ombudsman found that Ms G had been informed of the decline twice by 21 November 2024, so any delay in formal complaint registration would not have prevented her from seeking alternative mortgages. The ombudsman noted the mortgage was a commercial product (buy-to-let) and therefore unregulated, though fair and reasonable conduct was still assessed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website