are banks making is easier . . .

keithy444

i wanted to borrow another 15k on my existing mortgage, which at the moment is on a great 2.5%, which is C&G's standard variable. Due to the then ongoing closure of the local C&Gs offices (now reversed) i was referred to a very busy (and stressed) mortgage adviser at Lloyds TSB. I was told that there was no way i could extend on the SVR rate, as the bank was trying to control the amount of credit - the general public cop it again? About 5%, with an arrangement fee of a few hundred pounds was on offer. After about 3 weeks of left messages (his and mine) my application was denied as apparently i can't afford it. even then they could only lend less than the mortgage that i have with them anyway (hope that makes sense to you as a reader, it makes no sense at all to me as borrower) - and i had proved that i could easily borrow it. Ironically, on breaking the news, he stated that they might be able to offer me a personal loan! is that crazy, or is it just me? on principle, i went to another lender and had an application for a personal loan approved online within hours at a fairly decent 7.9% over 4 years.

once again, it seems that we are paying the price for the bank's mistakes - i'm a decent hard-working kinda chap, i've never defaulted on anything, and i couldn't get a simple extension - my house is worth way, way more than my mortgage (appreciate that that may go down as well as up etc. etc.) but does 'babies and bathwater' spring to mind?

jonesMUFCforever

To be honest we only have one side of the story - we don't know how much you earn what your existing outgoings are or what the real valuation of your house is compared to the total mortgage outstanding.
You turn down a Personal loan with Lloyds only to take it elsewhere?
Why did you not re mortgage the whole amount?

jonesMUFCforever

Keithy - do you not want to put more information on here to argue your case?

Rafter

Why would Lloyds lend to you at 2.5% when it could offer a new mortgage at 5%?

7.9% is a really good deal for unsecured lending - sounds like Lloyds did you a favour and you can always mortgage away from them when interest rates start rising and their SVR no longer looks as good.

R.