Jonathan Barnett, director of All Mortgage Matters, said that he had submitted two buy-to-let (BTL) applications for properties within a quarter of a mile of each other.
The properties were of a similar price and were to be assessed for rental income under Houses in Multiple Occupation guidelines rather than as a single occupancy agreement.
He claimed that the results saw one property valued at £1,700 per month and the other for £1,000 per month, though the latter was in a superior location. He was also critical of the timing, as surveys were completed by 11 February but he was not informed of a problem until 27 February.
Barnett said: “Surely it is the task of the underwriter to check that the information received from external sources is accurate and reliable? Having pointed out the disparity between the two assessments, the underwriter should, in my opinion, have contacted the surveyor automatically to check if an error may have been made.”
Graham Felstead, head of corporate accounts at RBS Intermediary Partners, said: “In this particular case, the valuer who was looking at the second property was not made aware that it was intended for multiple occupancy so valued it on a conventional occupancy basis.
"Once we were made aware of the multiple occupancy requirement, the valuation was immediately amended to £2,000 per month and the offer was issued. It is unfair to direct any criticism at our underwriters as they rely on the information they receive from valuers being accurate, which initially in this case it wasn’t.
“While we strive to offer the highest standards of service, under current market conditions, there will be occasions where lead times are longer than usual.”
