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Help - Lloyd's Bank have changed the terms of thier Mortgage Offer for no reason!!
ChunkyJack
Posts: 3 Newbie
I am a 1st time buyer
I approached Lloyds Bank in Spetember to see if I was eligable for one of thier 5% Deposit Local Lend a Hand Guarantee schemes.
Here a local council provides Lloyds with a guarantee of up to 20% of the value of the property so long as I can provide a deposit of 5%
At this meeting they credit checked me, advised that I qualified for this 5% deposit scheme and provided a mortgage promise of a load of £130k. Thier system gave me a rating of A
I have since made an offer on a property with a value of £125k, and i am able to put a deposit down of £8k.
This offer was accepted based on the mortgage promise. I have instructed solicitors and paid for some of the searches.
This wedenesday i had appointment with Lloyds who now say they will only offer me the mortgage if I provide a 10% deposit. My rating had fallen to B.
I do not have this.
My credit score at the initial application was 999, now it is 989 (due to an old settled loan being removed from my credit report during the previous month).
I asked if this was the reason, but they have not been able to say why they see me as a bigger risk now.
However the risk to the bank is the same whether i put down a 5 or 10% deposit (due to the guarantee). They will always be guaranteed 25% of the prperty value if i default.
They advised me that the system they used for the original mortgage promise assumes the buyer has a 10%. This was not mentioned at the time of the initial application . I made it clear that i was looking for a 95% LTV and based all actions on this.
The second credit check was made based on the actual loan amount needed. However when they did another basic credit check to compare, it showed my score as A again.
At the moment Lloyds are insisting on a 10% deposit or nothing.
I am awaiting a call from a manager on Monday and in the meantime i am checking the market for other possible help to buy or 95% LTV deals .
Any advise would be appreciated
I approached Lloyds Bank in Spetember to see if I was eligable for one of thier 5% Deposit Local Lend a Hand Guarantee schemes.
Here a local council provides Lloyds with a guarantee of up to 20% of the value of the property so long as I can provide a deposit of 5%
At this meeting they credit checked me, advised that I qualified for this 5% deposit scheme and provided a mortgage promise of a load of £130k. Thier system gave me a rating of A
I have since made an offer on a property with a value of £125k, and i am able to put a deposit down of £8k.
This offer was accepted based on the mortgage promise. I have instructed solicitors and paid for some of the searches.
This wedenesday i had appointment with Lloyds who now say they will only offer me the mortgage if I provide a 10% deposit. My rating had fallen to B.
I do not have this.
My credit score at the initial application was 999, now it is 989 (due to an old settled loan being removed from my credit report during the previous month).
I asked if this was the reason, but they have not been able to say why they see me as a bigger risk now.
However the risk to the bank is the same whether i put down a 5 or 10% deposit (due to the guarantee). They will always be guaranteed 25% of the prperty value if i default.
They advised me that the system they used for the original mortgage promise assumes the buyer has a 10%. This was not mentioned at the time of the initial application . I made it clear that i was looking for a 95% LTV and based all actions on this.
The second credit check was made based on the actual loan amount needed. However when they did another basic credit check to compare, it showed my score as A again.
At the moment Lloyds are insisting on a 10% deposit or nothing.
I am awaiting a call from a manager on Monday and in the meantime i am checking the market for other possible help to buy or 95% LTV deals .
Any advise would be appreciated
0
Comments
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Until you make a full application then you have no mortgage offer.0
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Sorry Thrugelmir, I meant Mortgage Promise.0
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They did this with me, chased me yes 10% is fine.....Paid my application and valuation fee and the day after called to say they they have considered my application and due to underwriting changes now want 25% deposit which I could not afford.
Felt cheated TBH as I banked with them for over 10 years and had a full ISA, savings and positive balance.
Needless to say I went elsewhere and will be changing my bank.0
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