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Retention on mortgage

Hi
I am interested in purchasing a house for £170K. I have a £50 deposit. The house needs some work (damp, electric & timber treatment) but I am completely aware of this and fully intend to carry out the work asap. I have applied to the Royal Bank of Scotland for a mortgage of £120K & they are insisting of a retention of £10K. I have banked with RBS for 20 years & have almost 30% of price. The entire experience of dealing with them has been a catalogue of misinformation and errors. I am not happy with this treatment but have already paid them almost £1K in fees. Any suggestions?

Comments

  • £50 deposit?????????????
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Brendak wrote: »
    Hi
    I am interested in purchasing a house for £170K. I have a £50 deposit. The house needs some work (damp, electric & timber treatment) but I am completely aware of this and fully intend to carry out the work asap. I have applied to the Royal Bank of Scotland for a mortgage of £120K & they are insisting of a retention of £10K. I have banked with RBS for 20 years & have almost 30% of price. The entire experience of dealing with them has been a catalogue of misinformation and errors. I am not happy with this treatment but have already paid them almost £1K in fees. Any suggestions?

    and they are not happy lending you the 10k their money until the work is done on the damp, electric & timber treatment...understandable...
  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    Brendak they are a nightmare to deal with for sure and full of idots that dont question thier systems.

    Having said this, a retention is pretty standard where such works are needed. A Bank cannot base descions and procedural rules on an applicants 'intentions' as thier history shows good intentions are not always followed through.

    I hear you shouting - 'but I will follow through on them', but again a large organisation cant base its model on making subjective judgments with a crystal ball even in spite of a good customers track record.

    Its like marriage - we all start with 100% surity yet nearly halve of us later change our minds!
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