Lloyds TSB

emmajhilton

I have just read that the Lloyds TSB is owned 41% by the tax payer. Please can I ask someone where a customer of theirs who is a tax payer is refused a loan for no good reason (ie property valuation etc or they just wont lend out money) stands on this. I.E if the bank is owned by the tax payer do they not have a legal right to a say on how the funds are spent? The Lloyds TSB are refusing me a £2000,00 on my mortgage for no good reason. Am I legally entitled to challenge this as I am a tax payer and in some way own a very very small percentage of the bank. Or I am just being stupid?

opinions4u

You're being stupid.

Next.

_Andy_

LMAO one of the best troll threads of the year. Good work OP

ACG

I also own a share of the 41% i dont want you to have a mortgage so beat that one

Unless you owned a significant amount of a company then no there isnt anything you can do.

Also you wont get declined a mortgage for "no good reason", there will be a reason...uf you dont agree with it thats another matter but it doesnt mean its not a good reason. You can dispute it (tax holder or not) but ultimately its their decission and their money so if they dont want to lend it you then there is sod all you can do about it.

opinions4u

For the sake of others who may genuinely wonder, I'll offer a view on this bizarre post.

emmajhilton wrote: »

I have just read that the Lloyds TSB is owned 41% by the tax payer.

And this has been the position for around 3 years.

Please can I ask someone where a customer of theirs who is a tax payer is refused a loan for no good reason (ie property valuation etc or they just wont lend out money) stands on this.

First of all "valuation" is not "no good reason" to lend. If a property doesn't provide reasonable security to lend against, it is foolish to lend against. A couple of examples - Northern Rock 125% loans. HBOS 97% loans that continued after the Credit Crunch had set in. It you lend £97k on a £100k property and that property then falls in value to £80k, and then the borrower doesn't pay for a bit, you could end up with a debt in excess of £100k on repossession and a property worth £80k.

As a taxpayer, I don't want to be exposed to such stupidity any further than I already am. As an LBG shareholder (in addition to my tiny share of the Government's holding) I don't want such stupid lending either.

I.E if the bank is owned by the tax payer do they not have a legal right to a say on how the funds are spent?

The taxpayer is represented in the boardroom and at shareholder meetings. So this already happens.

The Lloyds TSB are refusing me a £2000,00 on my mortgage for no good reason.

One good reason that you can't give everybody the loan that they want is that there isn't enough money to go round. They only have so much to lend, and for whatever reason they have customers they consider better risks than you. That's the way of the world.

Am I legally entitled to challenge this as I am a tax payer and in some way own a very very small percentage of the bank.

You have a right, as a customer, to appeal a lending decision. They have a right to reject your appeal.

Or I am just being stupid?

Look at it this way - if every taxpayer thought they could get £200,000 out of a lender and then decided not to pay it back, what would the outcome be?

It really is a bizarre viewpoint that you should get whatever mortgage, loan or credit card you want simply because you pay tax.

Thrugelmir

emmajhilton wrote: »

Please can I ask someone where a customer of theirs who is a tax payer is refused a loan for no good reason

Sorry, but you obviously fail to meet the criteria set by Lloyds.

bigadaj

I'm not sure you are being reasonable to the OP here - after all if it all goes tits up then the loan/ mortgage will obviously have been mis-sold and compensation will be due. Keep up please.

emmajhilton

thank you for your replies and sorry for coming across as stupid. You do not know my full reasons for asking this question and I fully appreciate there are reasons why banks will not lend to people that they feel cannot repay them. My situation is different. I am arguing with the Lloyds TSB over £2,000 that they feel they cannot lend me on my mortgage. But they are more than happy to lend/throw a credit card at me for over £5,000. I was wondering about the legalities of tax payers bailing them out when they needed it. I thought this forum was to ask people's advice and not be ridiculed. Andy, you are obviously easily pleased at pathetic sarcasm and OP - if that's the best work you can do, then you are sad.

_Andy_

Superb, absolutely superb

opinions4u

emmajhilton wrote: »

My situation is different. I am arguing with the Lloyds TSB over £2,000 that they feel they cannot lend me on my mortgage. But they are more than happy to lend/throw a credit card at me for over £5,000.

I thought you'd said £200k in your original post.

Regardless, according to the Lloyds TSB web site the minimum additional loan they would consider on a mortgage is £5k and total loan must be less than 80% of valuation.

So it sounds like you don't meet their criteria for additional mortgage lending. But they have identified alternative ways for you to raise the finance that you want.

Most helpful, surely?

If not, try remortgaging elsewhere.

I was wondering about the legalities of tax payers bailing them out when they needed it.

As the decision was, I believe, agreed by Parliament, the nation's law makers, you're going to struggle to find legal recourse to reverse the bailout.

Mark148

I know you feel angry due to the rejection however when you are in a better financial position in the future remember this display of customer loyalty and take your business elsewhere.