The Mortgage Talk promise will offer refunds for valuation and legal fees lost as a result of a transaction not completing, with the refund becoming payable once a subsequent transaction is successful.
Mortgage Talk will refund up to £250 in respect of lost valuation fees, and up to £150 for lost legal costs, including VAT and disbursements.
The scheme is designed to protect buyers who are required to pay up front for non-refundable costs such as valuations and local searches that, when a transaction falls through, cannot be recovered. It will act as a safeguard for house purchases that are affected by gazumping, either sellers or buyers changing their minds, or simply an adverse valuation.
Launching the Mortgage Talk Promise, Managing Director Andrew Frankish said:"This new scheme provides major peace of mind for homebuyers who, through no fault of their own, are left out of pocket by property transactions that do not proceed to completion. If, for any reason, one of our customers suffers
financial loss as a result of being unable to complete, they can rest assured that, thanks to the Mortgage Talk Promise, they will be recompensed for their valuation and legal fees."
Buyers will receive a voucher at the outset of their initial mortgage application, and are simply required to submit this to the mortgage broker within three months of their successful mortgage application, in order to receive their cashback. The scheme does not apply to buy-to-lets mortgages, holiday homes or remortgages.
