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As a single woman in my thirties, I had always dreamed of purchasing my own house. I had doubted whether this day would ever come for years.
However, against all odds, last June, my offer on my first property was accepted. The sense of accomplishment I felt after working so hard for this moment was immense.
In July, the lender, Atom Bank, conducted a valuation of the house. The valuation came in at £410,000, which was £17,000 less than my offer. While I wanted to negotiate, the seller expressed her inability to finalize a price until she found a new place and determined her budget. This resulted in a frustrating situation.
This back-and-forth continued until September when Atom Bank informed me that if no progress was made within seven days, my mortgage deal would be terminated. Finally, the seller agreed to a sale price of £420,000, and in October, I received my mortgage offer. The offer was valid until March 19, 2023.
Based on all the aforementioned events, I completed the exchange last Monday with a 10% deposit. Prior to the exchange, my solicitor confirmed with Atom Bank that there were no outstanding issues and that my mortgage offer remained valid.
However, the next day, Atom Bank emailed my solicitor to inform us that they couldn’t release the funds for the house. The reason being that the house valuation was about to expire, and we still had a few weeks until completion. Surprisingly, neither my broker, solicitor, nor myself were aware of this deadline. Although my mortgage was valid until March 19, Atom Bank deemed it irrelevant.
I meticulously went through every document Atom Bank had sent me, including the terms and conditions, mortgage offer, and valuation report. Nowhere was the valuation expiry date mentioned. Even my solicitor, mortgage broker, and the estate agent admitted to never encountering a situation like this throughout their years in the industry.
In essence, Atom Bank provided me with a mortgage offer that they had no intention of honoring beyond the end of January. Moreover, they failed to communicate this fact to anyone involved. Consequently, I face the serious risk of losing the £42,000 deposit I have already paid, as well as losing the house if Atom Bank refuses to honor the mortgage.
Now, Atom Bank wants to revaluate the house, but the estate agent is hesitant to allow it due to the possibility of a decrease in the price. This would require me to provide a higher cash deposit, which I am most likely unable to do. The stress and uncertainty surrounding this situation are overwhelming, and I have no idea what steps to take next.
– SC, Brighton
Dear reader,
As a woman purchasing your first house without any assistance, it is truly commendable that you managed to achieve this feat. I can only imagine how devastating it must have been to have your dreams shattered after exchanging contracts with the seller. At this stage, your deposit is at risk, meaning you could potentially lose the £42,000 you have diligently saved over the years.
You shared all the correspondence with Atom Bank, and I agree that there was no mention of the valuation deadline. Such a crucial deadline should have been clearly communicated from the beginning. I intervened and requested Atom Bank to investigate, explaining the dire situation you found yourself in. However, days went by without any response from them.
I reached out to their press office through several emails, but unfortunately, they went unanswered. This left me wondering if they were deliberately ignoring me. Meanwhile, your stress levels continued to rise. Eventually, someone from Atom Bank conducted a new valuation, adding to your anxiety as property prices are currently declining in many parts of the UK.
Finally, Atom Bank got their act together and decided to honor the mortgage. Their spokesperson claimed that they had missed my emails due to a high volume of spam. Although they conducted another valuation, they chose to discard it and stick with the original one. They stated that cases like yours are “rare” because most applications are completed well before valuations expire.
Atom Bank mentioned that, upon being made aware of the situation (before my involvement), they asked the valuer if an extension was possible to meet completion. However, the decision to extend is at the valuer’s discretion, and due to recent shifts in the property market, they believed a revaluation would be more sensible.
They emphasized the importance of having an accurate valuation for all parties involved, especially for the customer who may choose to withdraw from the purchase if the property’s value has been negatively affected by market conditions.
Despite conducting a new valuation, Atom Bank is refusing to disclose the amount as they have discarded it. Nevertheless, you must be greatly relieved that your purchase is back on track, and if everything goes smoothly, you will receive the keys today. I hope you find immense happiness in your new home for many years to come.
An Atom Bank spokesperson expressed their apologies for subjecting you to such a frustrating experience while buying your first home. They mentioned that although customers are not explicitly informed of the valuation expiry date, their online criteria for brokers clearly states the validity period, which should make the broker aware prior to submitting the application. They also stated that they notify customers of the expiry date upon receiving the valuation to ensure awareness of the final deadline.
In response to “feedback” from brokers and customers, Atom Bank has increased the validity of property valuations by 30 days, extending it from 150 to 180 days. They hope that this change will prevent situations like yours from occurring in the future.
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