Partially upheld: Motor insurance, total loss valuation complaint against Nationwide Building Society

Decision detail

Summary

Miss D and Mr K complained that Nationwide Building Society undervalued their property, resulting in a higher loan-to-value ratio and forcing them to accept a 4.44% interest rate instead of the desired 3.94%. They also complained about delays in the appeals process, inconsistent application of Nationwide's policies, and the requirement to submit a new application. The ombudsman found that Nationwide was not responsible for the surveyor's valuation decision as the surveyor was suitably qualified and independent, and that referring the appeal back to the same surveyor was reasonable practice. However, the ombudsman upheld the complaint regarding delays in the appeals process, which took approximately 10 weeks instead of 3 weeks, causing Miss D and Mr K to pay a higher reversionary rate on their existing mortgage. Nationwide was ordered to pay £1,344.56 for the difference in interest rates over 7 weeks and £500 for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found that Nationwide was not responsible for the surveyor's valuation decision as the surveyor was suitably qualified and independent. Referring the appeal back to the same surveyor was reasonable practice and the surveyor's decision to maintain the valuation was within their professional judgment. However, the ombudsman found that the appeals process took approximately 10 weeks when it should have taken 3 weeks, constituting a clear service failure. The ombudsman upheld the complaint regarding delays and poor service, but rejected claims that the valuation itself was wrong or that Nationwide should have obtained a new valuation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website