Mis-Sold Loan?

spudpainter

My wife and i recently tried to obtain a £6000 loan from lloyds tsb secured on our house( seperate from the initial mortgage) as the interest rates are so low as opposed to their normal loan aprs.However at the consultation with their loans rep we were told there was'nt sufficient equity on our house to support the loan amount so we would have to accept a loan at their standard apr rates if we wanted the money.Needing the money we took what they said at face value and signed up for the loan.The question of lack or equity in our house worried us but i've only recently done some calculations of my own,with a recent valuation and our mortgage statement.Our house was valued at £150,760 and we owe £117,000 giving us £33,760 in equity.Was this a deliberate deception in order to get us to take a costlier product or do banks calculate equity values differently?

opinions4u

Their web site says:

your existing mortgage and further borrowing amount added together totals no more than 80% of the value of your home

80% of £151,000 is £120,800. You wanted to borrow a total of £123,000.

Looks like an outrageous case of the bank identifying the right product for the customer's needs.

Apples2

spudpainter wrote: »

Needing the money we took what they said at face value and signed up for the loan.

You don't pay the banks to be your own personal financial advisors.

They are there to sell a product, in your case, they offered the one which suited you best OUT OF THE PRODUCTS THEY SELL.

If you went into a BMW garage to buy a car, would you be complaining afterwards that there was a Fiat Punto across the road cheaper so the BMW has been mis-sold??

_Andy_

Apples2 wrote: »

If you went into a BMW garage to buy a car, would you be complaining afterwards that there was a Fiat Punto across the road cheaper so the BMW has been mis-sold??

The way this forum is going, it wouldn't surprise me.

_Andy_

spudpainter wrote: »

Was this a deliberate deception in order to get us to take a costlier product

Yes absolutely. Also, the first moon landing was faked (you can tell from the movement of the flag).
Additionally, Elvis is alive (I saw him in my local supermarket earlier purchasing a Scotch egg and a Dr Pepper).