Miss sold a natwest loan???

gsxrsue

Hi
In 2004 my husband and I were given a loan from the Natwest. At that time we explained that we were going to buy our Council House and would like to incorporate the loan into the mortgage when we bought. We were told by the manager at that time that this would be fine to do so went ahead and took the loan.
When we came to apply for the mortgage we were then told that as we were buying a council property, due to the councils 3year interest in the discount we would receive they would not give us a mortgage!!!! :mad:
(The discount you receive from the Council has to be paid back if you sell the property within the first 3years)
We were gobsmacked!!!! The whole reason we took out the loan was because we were assured that we would be able to incorporate it within the mortgage!!
We went elsewhere for the mortgage, but after about 2 years I became ill and have had to claim on the PPI. I am now registered disabled and have been informed that the PPI doesnt cover the whole term of the loan!!!
I have had no end of trouble and harrasment from the Natwest ever since claiming......to the point that now they are demanding us to repay the remainder of the loan!!! even tho I am still unable to work!
We have a meeting at our local branch this Sat:eek:........any ideas anyone please???

Apples2

I don't see how Natwest can be held to account for you qualifying for a Mortgage!!
It appears more like bad judgement on your part to request the loan before you had the mortgage.

The good thing appears to be the loan is unsecured against the house so your home is safe. If you have gone along with your original plan of securing it against the house, you could be looking at repossession.

The PPI appears to have been mis-sold, head over to the PPI forum for more info on reclaiming all what you have paid.

http://forums.moneysavingexpert.com/forumdisplay.html?f=169

_Andy_

I don't see how the PPI was 'mis sold' - PPI never covers the full term of the loan, this is clearly stated in the documentation.

Apples2

My mistake, I skipped the "full term" bit and only noticed the "registered disabled" bit.

gsxrsue

Hi
I didnt realise I was holding the Natwest accountable for me qualifying for a mortgage?!!
I mearly said that the Bank Manager had said that the loan could be incorporated within a mortgage as we were unsure of wether to take the loan or wait until we got a mortgage. So by telling us we could incorporate it at a later date was misleading and basically a lie.
As for the PPI, at NO point was I told or shown anything about it not covering the whole term of the loan, I did ask if there was a waiting period if a claim was made but was not told anything else. Bit like taking out a car insurance policy for 12mths but only getting covered for 10!!
But still, thanks for your help........i think!

jonesMUFCforever

The bank manager agreeing a loan has no way of knowing that Nat West mortgage's arm would grant you a mortgage.
Did you read the terms and conditions of the PPI - did you register a complaint within the cooling off period - of course not just bank bashing makes you feel better than admitting you ballsed up.
Why did you not take out income protection or critical illness cover (in general not just to cover this loan)?

_Andy_

Usual case - poster asks for advice, gets it but doesn't like it.

Monty10

Hi, the natwest manager was wrong to advise that the loan you took out could be added to a future mortgage. I suspect he was just trying to sell the loan and hit is sales targets, he would not know what the banks future lending appetite would be. However this was verbal and you would have signed all the terms and conditions for the loan. I think you need some proper advice before meeting with NatWest (perhaps the CAB).

At the end of the day the bank wants its money back and I hope that you can come to an agreement with them, the loan is unsecured so there's is little they can do if you cant afford to repay in full.

Good luck

gsxrsue

Thanks Monty10,
Helpful polite advice from an understanding person.

Thanks again :-)