Natwest One Mortgage LTV reduction

Nickyrd

Has anyone else suffered from the recent policy decision by Natwest (RBS) to reduce the LTV from 95% to 75% on their One mortgage?

I took out a NW One mortgage last year and was apporved a LTV level of 95% of my property value. I took the mortgage out to give me the available funds to undertake a substantial extension project on my house. I was advised by the NW One mortgage advisor when I took out the mortgage that I should go for a max 75% LTV as it attracted a slighhtly lower interest rate and would save me a couple of pounds each month. I was assured that the funds up to 95% LTV were available and all I needed to do was call them and they would increase the amount available on my mortgage to 95% and I could draw down this cash when needed. Good advice I thought!!!!

When I called them recently to request the amount of cash available be increased to 95% I was told, "sorry, we have changed our policy and we will not be able to go above your current 75% LTV rate, good bye". Needless to say I was somewhat taken back by this message, especially as I had the building work underway and contractors on site with whom I had agreed prices etc. The project is 99% complete nw but I have had to borrow money from elsewhere to fund the payments while the Natwest look into this issue.

Has anyone else come a cropper on this lending decision by the RBS (NW) and did you get them to honour their original agreement to lend up to 95%. I'm hoping they will change their mind and agree to aloow the 95% LTV be reinstated. But htey have adivsed that I may have to have the house revalued and have my financial situation reassessed. Basically reapply for my mortgage with them.

Any help gratefully appreciated.

Nick