Jonathan Barnett, from All Mortgage Matters, criticised Pavilion Security over a mistake in an application which left the client with a decision-in-principle on the wrong type of mortgage. Barnett explained that he submitted a buy-to-let (BTL) application for a Platform deal, but as it was a limited offer it needed to go via a packager.
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However he claimed an underwriter at Pavilion made an error, and it was submitted as residential rather than as BTL. The problem continued as it was put forward to the lender who approved the application and issued the decision-in-principle.
Barnett said: “As a result of the mistake it came back as a ‘pass’ with a valuation report. Then Platform noticed the error had been made so it had to begin the process again. However when it ran the correct application, the client didn’t pass the credit check for BTL as they came up as adverse.
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“It is a real problem for the client as they got the decision-in-principle and the application has gone to the offer stage and the client had spent a sum of money that they cannot recover.”
However, Tony Morris, director of compliance at Pavillion Securities Ltd, said: “Barnett’s comments are incorrect. The application was submitted to the lender on the BTL product requested but cascaded to a non-conforming product. Following further discussions, we have now obtained an offer on the product originally requested. The client has not lost any money.”
