Nationwide Building Society

Financial Ombudsman decision DRN5270994 Upheld

Upheldoutcome, as published by the Ombudsman

£200redress stated in the decision

—deadline to accept (not the decision date)

The Ombudsman does not print a decision date. The date above is the deadline the consumer was given to accept or reject the decision, which is set about a month after it was issued. It is reliable to the year, not to the month.

What this decision was about

Interest and rates, Mortgage administration

In the Ombudsman’s words

Nationwide agreed to provide Mr and Mrs F with a tracker mortgage to help them purchase a property, which was valued at the same amount as the purchase price. Subsequently, the vendors agreed to reduce the purchase price to offset costs that Mr and Mrs F would incur because the vendors were unable to fulfil their obligations prior to the sale. The reduction in the purchase price took the mortgage to purchase price ratio to above 80% and Nationwide increased the interest rate.Interest and rates

He concluded that many lenders used the purchase price, if it was lower than the valuation, to calculate the amount and terms of the mortgage. However, he recommended that Nationwide should pay £200 for the distress and inconvenience it caused by delaying the processing of the mortgage for seven weeks without reason.Mortgage administration

Source

This page summarises the Ombudsman’s published final decision. The document itself is the record: DRN5270994.pdf on financial-ombudsman.org.uk.

The outcome shown is the Ombudsman’s own published classification, not our reading of the text. Nothing here is legal advice, and a decision concerns only the complaint it was made about.