Help rbs ripped me off!

Kimbobhoy3292

I am looking for advice. 2 months ago I got a mortgage from rbs for £40000 with a £2000 deposit. I was accepted which I was delighted with. The house was valued at £50000 so I asked for £6000 extra for home improvements. The mortgage advicer told me I would hav to apply for a seperate personal loan for this then merge it with my mortgage after a month. She set up a meeting with a rbs personal loan advicer to give me the loan which I received. After making my 1st payment I phoned the mortgage centre to see when I could merge the loan and mortgage, to my horror I was told that they could not be merged and that I should have applied for a home improvement loan against my house. When I explained what the mortgage adviser told me she said I would have to speak to her. Now after 3 weeks of tryin to contact her she is not returning my calls surprise surprise. I hav went throu the complaints department who are holding an investigation but have been told not to hope for much because my loan to value is already 95%. I am now left with an extra £118 a month loan I cant afford! Anyone with any advice would be much appreciated.

TrickyDicky101

Are you in Scotland? The house was worth what you paid for it (not some valuation not backed by cool hard cash - even one performed by a qualified RICS surveyor) so that shoul have set alarm bells ringing when you effectively wanted a 114% mortgage (£48k vs £42k value).

That being said, I can appreciate you are seriously upset with whoever advised you to take out the personal loan too. Do you still have the loan money or have you spent it?

Thrugelmir

Have you spent all the money. If it's unaffordable repay it.

You cannot obtain a mortgage loan for more than you paid for the property. The value is irrelevant.

Kimbobhoy3292

Yes I am in Scotland. Was the rbs mortgage adviser who told me to do this. Would have took my business elsewhere if I had known about this. I now owe £38000 on my mortgage and £6000 on my personal loan. I was a first time buyer so was mabye a bit naive. I have already spent the money on home improvements. Will need to get a 2nd job or will b repossessed!

Let_Us_See

Keep up pressure on your complaint and I hope you have documental proof to back your claim.

CKhalvashi

Let_Us_See wrote: »

Keep up pressure on your complaint and I hope you have documental proof to back your claim.

This is the only advice that can be given at this stage.

You'll need payslips, bank statements from before to show spending, and bank statments now.

The only time I can see this being an issue is if both loans are more than the rent you were paying before plus what you were saving each month.

Thrugelmir

I'm surprised that you met affordability requirements for the mortgage.

How have you managed to reduce your mortgage by £2k in 2 months? If you've no spare money.

Kimbobhoy3292

The £2000 thats off was the 5% deposit. The mortgage advisor went throu my bank statements and recommend that I could afford £300 a month in payments over 16 years and 7 months. The loan was £118 over 5 years but was told after merging the 2 and increasing my mortgage term to 20 years the payments would still be round about £300

CKhalvashi

Just found this (I know, it's the mail)

Didn't know if it may be of interest to OP.

http://www.dailymail.co.uk/news/article-2735397/State-backed-RBS-fined-14-5million-failings-advice-mortgage-customers.html

Thrugelmir

Kimbobhoy3292 wrote: »

The mortgage advisor went throu my bank statements and recommend that I could afford £300 a month in payments over 16 years and 7 months. The loan was £118 over 5 years but was told after merging the 2 and increasing my mortgage term to 20 years the payments would still be round about £300

Why not request a change to your mortgage term say to 25 years.

kiddakidda

Check the news today, and thread by MSE admin.

Seems you are not alone.